Formula Grants for Rural Areas and Tribal Transit Programs
Section 5311‐ Operations Program
Assistance Listing 20.509
Relating to Last Six Months of June 30, 2023 Contract
Relating to First Six Months of June 30, 2024 Contract
Criteria: Costs charged to federal funds under this grant must comply with the cost principles administered
by the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance) found at 2 CFR Part 200.
Condition: Agency management discovered that 100% of mechanics’ wages were included in the monthly
operating reports for the year ended December 31, 2023, and a portion of these wages were not allowable.
Management performed a complete and thorough review of the mechanic’s salary allocations for the period
January 1, 2023, through December 31, 2023. It was determined that the allocation discrepancy began
January 1, 2023, and ended December 31, 2023. During this review it was also noted that additional funding
requests could be made for five backup vehicle costs. The net result is that the Agency had overreported the
federal and state portion of the unallowable costs that will be returned to the Kansas Department of
Transportation as follows:
January 1, 2023 to June 30, 2023 $13,715
July 1, 2023 to December 31, 2023 $20,781
Agency management met with the Kansas Department of Transportation Program Administrator and Program
Consultant to determine a plan of action to correct the discrepancies.
Cause: As of January 1, 2023, a formula in the spreadsheet to prepare the monthly operating reports to the
Kansas Department of Transportation was not linked to the proper cell.
Effect: The Agency owes $13,715 to the Kansas Department of Revenue for the period January 1, 2023 to
June 30, 2023, and $20,781 for the period July 1, 2023 to June 30, 2024.
Recommendation: Agency management took immediate action to determine the effect for the entire year,
communicated with the auditor, communicated with the Kansas Department of Transportation, and
developed the plan to respond to the finding. As recommended by the Kansas Department of Transportation,
a check for $13,715 will be written to the Kansas Department of Transportation. The last six‐month amount
of $20,781 will be reported on the February, 2024, operating report to reduce the Kansas Department of
Transportation reimbursement provided to the Agency for the year ending June 30, 2024.
View of Responsible Officials and Planned Corrective Actions: We agree with the finding and have taken the
following actions to fully address and correct the discrepancies.
1. Agency management reviewed all twelve months of 2023 billing to determine the total amount
to return to the Kansas Department of Transportation. After this review, management
determined that the overreporting discrepancies began in January, 2023, and occurred every
month through December, 2023.
2. A meeting was held between Agency management and the Kansas Department of Transportation
Program Administrator and Program Consultant to discuss the findings and determine a plan of
action to correct the discrepancies. The action planned is outlined in the Recommendation section
of this finding.
3. Monthly Operating Budget billings for January 2023 through December 2023, were reviewed and
the appropriate amounts that should have been billed were determined and compared to the
actual amount billed to KDOT. The net result is as identified in the Recommendation section of
this finding.
4. Agency management has reviewed the internal processes and enhanced control activities to
ensure the mechanic salaries are accurately reported in the monthly operating reports going
forward.
Formula Grants for Rural Areas and Tribal Transit Programs
Section 5311‐ Operations Program
Assistance Listing 20.509
Relating to Last Six Months of June 30, 2023 Contract
Relating to First Six Months of June 30, 2024 Contract
Criteria: Processes must be designed and implemented to provide reasonable assurance regarding the
reliability of reporting for internal and external use as outlined in the Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) found at 2 CFR Part 200.
Condition: See Finding 2023‐001 for the details.
Effect: The Agency owes $13,715 to the Kansas Department of Revenue for the period January 1, 2023 to
June 30, 2023, and $20,781 for the period July 1, 2023 to June 30, 2024. See finding 2023‐001 for more detail.
Recommendation: We recommend the Agency implement control activities and monitoring procedures to
ensure monthly reports that are submitted to the funding agencies are accurately reflecting allowable grant
costs.
View of Responsible Officials and Planned Corrective Actions: We agree with the finding and have taken the
actions as outlined in finding 2023‐001 to fully address and improve the control process. Specifically, Agency
management has reviewed the internal processes and enhanced control activities to ensure the mechanic
salaries are accurately reported in the monthly operating reports going forward.
Formula Grants for Rural Areas and Tribal Transit Programs
Section 5311‐ Operations Program
Assistance Listing 20.509
Relating to Last Six Months of June 30, 2023 Contract
Relating to First Six Months of June 30, 2024 Contract
Criteria: Costs charged to federal funds under this grant must comply with the cost principles administered
by the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance) found at 2 CFR Part 200.
Condition: Agency management discovered that 100% of mechanics’ wages were included in the monthly
operating reports for the year ended December 31, 2023, and a portion of these wages were not allowable.
Management performed a complete and thorough review of the mechanic’s salary allocations for the period
January 1, 2023, through December 31, 2023. It was determined that the allocation discrepancy began
January 1, 2023, and ended December 31, 2023. During this review it was also noted that additional funding
requests could be made for five backup vehicle costs. The net result is that the Agency had overreported the
federal and state portion of the unallowable costs that will be returned to the Kansas Department of
Transportation as follows:
January 1, 2023 to June 30, 2023 $13,715
July 1, 2023 to December 31, 2023 $20,781
Agency management met with the Kansas Department of Transportation Program Administrator and Program
Consultant to determine a plan of action to correct the discrepancies.
Cause: As of January 1, 2023, a formula in the spreadsheet to prepare the monthly operating reports to the
Kansas Department of Transportation was not linked to the proper cell.
Effect: The Agency owes $13,715 to the Kansas Department of Revenue for the period January 1, 2023 to
June 30, 2023, and $20,781 for the period July 1, 2023 to June 30, 2024.
Recommendation: Agency management took immediate action to determine the effect for the entire year,
communicated with the auditor, communicated with the Kansas Department of Transportation, and
developed the plan to respond to the finding. As recommended by the Kansas Department of Transportation,
a check for $13,715 will be written to the Kansas Department of Transportation. The last six‐month amount
of $20,781 will be reported on the February, 2024, operating report to reduce the Kansas Department of
Transportation reimbursement provided to the Agency for the year ending June 30, 2024.
View of Responsible Officials and Planned Corrective Actions: We agree with the finding and have taken the
following actions to fully address and correct the discrepancies.
1. Agency management reviewed all twelve months of 2023 billing to determine the total amount
to return to the Kansas Department of Transportation. After this review, management
determined that the overreporting discrepancies began in January, 2023, and occurred every
month through December, 2023.
2. A meeting was held between Agency management and the Kansas Department of Transportation
Program Administrator and Program Consultant to discuss the findings and determine a plan of
action to correct the discrepancies. The action planned is outlined in the Recommendation section
of this finding.
3. Monthly Operating Budget billings for January 2023 through December 2023, were reviewed and
the appropriate amounts that should have been billed were determined and compared to the
actual amount billed to KDOT. The net result is as identified in the Recommendation section of
this finding.
4. Agency management has reviewed the internal processes and enhanced control activities to
ensure the mechanic salaries are accurately reported in the monthly operating reports going
forward.
Formula Grants for Rural Areas and Tribal Transit Programs
Section 5311‐ Operations Program
Assistance Listing 20.509
Relating to Last Six Months of June 30, 2023 Contract
Relating to First Six Months of June 30, 2024 Contract
Criteria: Processes must be designed and implemented to provide reasonable assurance regarding the
reliability of reporting for internal and external use as outlined in the Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) found at 2 CFR Part 200.
Condition: See Finding 2023‐001 for the details.
Effect: The Agency owes $13,715 to the Kansas Department of Revenue for the period January 1, 2023 to
June 30, 2023, and $20,781 for the period July 1, 2023 to June 30, 2024. See finding 2023‐001 for more detail.
Recommendation: We recommend the Agency implement control activities and monitoring procedures to
ensure monthly reports that are submitted to the funding agencies are accurately reflecting allowable grant
costs.
View of Responsible Officials and Planned Corrective Actions: We agree with the finding and have taken the
actions as outlined in finding 2023‐001 to fully address and improve the control process. Specifically, Agency
management has reviewed the internal processes and enhanced control activities to ensure the mechanic
salaries are accurately reported in the monthly operating reports going forward.
Formula Grants for Rural Areas and Tribal Transit Programs
Section 5311‐ Operations Program
Assistance Listing 20.509
Relating to Last Six Months of June 30, 2023 Contract
Relating to First Six Months of June 30, 2024 Contract
Criteria: Costs charged to federal funds under this grant must comply with the cost principles administered
by the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance) found at 2 CFR Part 200.
Condition: Agency management discovered that 100% of mechanics’ wages were included in the monthly
operating reports for the year ended December 31, 2023, and a portion of these wages were not allowable.
Management performed a complete and thorough review of the mechanic’s salary allocations for the period
January 1, 2023, through December 31, 2023. It was determined that the allocation discrepancy began
January 1, 2023, and ended December 31, 2023. During this review it was also noted that additional funding
requests could be made for five backup vehicle costs. The net result is that the Agency had overreported the
federal and state portion of the unallowable costs that will be returned to the Kansas Department of
Transportation as follows:
January 1, 2023 to June 30, 2023 $13,715
July 1, 2023 to December 31, 2023 $20,781
Agency management met with the Kansas Department of Transportation Program Administrator and Program
Consultant to determine a plan of action to correct the discrepancies.
Cause: As of January 1, 2023, a formula in the spreadsheet to prepare the monthly operating reports to the
Kansas Department of Transportation was not linked to the proper cell.
Effect: The Agency owes $13,715 to the Kansas Department of Revenue for the period January 1, 2023 to
June 30, 2023, and $20,781 for the period July 1, 2023 to June 30, 2024.
Recommendation: Agency management took immediate action to determine the effect for the entire year,
communicated with the auditor, communicated with the Kansas Department of Transportation, and
developed the plan to respond to the finding. As recommended by the Kansas Department of Transportation,
a check for $13,715 will be written to the Kansas Department of Transportation. The last six‐month amount
of $20,781 will be reported on the February, 2024, operating report to reduce the Kansas Department of
Transportation reimbursement provided to the Agency for the year ending June 30, 2024.
View of Responsible Officials and Planned Corrective Actions: We agree with the finding and have taken the
following actions to fully address and correct the discrepancies.
1. Agency management reviewed all twelve months of 2023 billing to determine the total amount
to return to the Kansas Department of Transportation. After this review, management
determined that the overreporting discrepancies began in January, 2023, and occurred every
month through December, 2023.
2. A meeting was held between Agency management and the Kansas Department of Transportation
Program Administrator and Program Consultant to discuss the findings and determine a plan of
action to correct the discrepancies. The action planned is outlined in the Recommendation section
of this finding.
3. Monthly Operating Budget billings for January 2023 through December 2023, were reviewed and
the appropriate amounts that should have been billed were determined and compared to the
actual amount billed to KDOT. The net result is as identified in the Recommendation section of
this finding.
4. Agency management has reviewed the internal processes and enhanced control activities to
ensure the mechanic salaries are accurately reported in the monthly operating reports going
forward.
Formula Grants for Rural Areas and Tribal Transit Programs
Section 5311‐ Operations Program
Assistance Listing 20.509
Relating to Last Six Months of June 30, 2023 Contract
Relating to First Six Months of June 30, 2024 Contract
Criteria: Processes must be designed and implemented to provide reasonable assurance regarding the
reliability of reporting for internal and external use as outlined in the Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) found at 2 CFR Part 200.
Condition: See Finding 2023‐001 for the details.
Effect: The Agency owes $13,715 to the Kansas Department of Revenue for the period January 1, 2023 to
June 30, 2023, and $20,781 for the period July 1, 2023 to June 30, 2024. See finding 2023‐001 for more detail.
Recommendation: We recommend the Agency implement control activities and monitoring procedures to
ensure monthly reports that are submitted to the funding agencies are accurately reflecting allowable grant
costs.
View of Responsible Officials and Planned Corrective Actions: We agree with the finding and have taken the
actions as outlined in finding 2023‐001 to fully address and improve the control process. Specifically, Agency
management has reviewed the internal processes and enhanced control activities to ensure the mechanic
salaries are accurately reported in the monthly operating reports going forward.
Formula Grants for Rural Areas and Tribal Transit Programs
Section 5311‐ Operations Program
Assistance Listing 20.509
Relating to Last Six Months of June 30, 2023 Contract
Relating to First Six Months of June 30, 2024 Contract
Criteria: Costs charged to federal funds under this grant must comply with the cost principles administered
by the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance) found at 2 CFR Part 200.
Condition: Agency management discovered that 100% of mechanics’ wages were included in the monthly
operating reports for the year ended December 31, 2023, and a portion of these wages were not allowable.
Management performed a complete and thorough review of the mechanic’s salary allocations for the period
January 1, 2023, through December 31, 2023. It was determined that the allocation discrepancy began
January 1, 2023, and ended December 31, 2023. During this review it was also noted that additional funding
requests could be made for five backup vehicle costs. The net result is that the Agency had overreported the
federal and state portion of the unallowable costs that will be returned to the Kansas Department of
Transportation as follows:
January 1, 2023 to June 30, 2023 $13,715
July 1, 2023 to December 31, 2023 $20,781
Agency management met with the Kansas Department of Transportation Program Administrator and Program
Consultant to determine a plan of action to correct the discrepancies.
Cause: As of January 1, 2023, a formula in the spreadsheet to prepare the monthly operating reports to the
Kansas Department of Transportation was not linked to the proper cell.
Effect: The Agency owes $13,715 to the Kansas Department of Revenue for the period January 1, 2023 to
June 30, 2023, and $20,781 for the period July 1, 2023 to June 30, 2024.
Recommendation: Agency management took immediate action to determine the effect for the entire year,
communicated with the auditor, communicated with the Kansas Department of Transportation, and
developed the plan to respond to the finding. As recommended by the Kansas Department of Transportation,
a check for $13,715 will be written to the Kansas Department of Transportation. The last six‐month amount
of $20,781 will be reported on the February, 2024, operating report to reduce the Kansas Department of
Transportation reimbursement provided to the Agency for the year ending June 30, 2024.
View of Responsible Officials and Planned Corrective Actions: We agree with the finding and have taken the
following actions to fully address and correct the discrepancies.
1. Agency management reviewed all twelve months of 2023 billing to determine the total amount
to return to the Kansas Department of Transportation. After this review, management
determined that the overreporting discrepancies began in January, 2023, and occurred every
month through December, 2023.
2. A meeting was held between Agency management and the Kansas Department of Transportation
Program Administrator and Program Consultant to discuss the findings and determine a plan of
action to correct the discrepancies. The action planned is outlined in the Recommendation section
of this finding.
3. Monthly Operating Budget billings for January 2023 through December 2023, were reviewed and
the appropriate amounts that should have been billed were determined and compared to the
actual amount billed to KDOT. The net result is as identified in the Recommendation section of
this finding.
4. Agency management has reviewed the internal processes and enhanced control activities to
ensure the mechanic salaries are accurately reported in the monthly operating reports going
forward.
Formula Grants for Rural Areas and Tribal Transit Programs
Section 5311‐ Operations Program
Assistance Listing 20.509
Relating to Last Six Months of June 30, 2023 Contract
Relating to First Six Months of June 30, 2024 Contract
Criteria: Processes must be designed and implemented to provide reasonable assurance regarding the
reliability of reporting for internal and external use as outlined in the Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) found at 2 CFR Part 200.
Condition: See Finding 2023‐001 for the details.
Effect: The Agency owes $13,715 to the Kansas Department of Revenue for the period January 1, 2023 to
June 30, 2023, and $20,781 for the period July 1, 2023 to June 30, 2024. See finding 2023‐001 for more detail.
Recommendation: We recommend the Agency implement control activities and monitoring procedures to
ensure monthly reports that are submitted to the funding agencies are accurately reflecting allowable grant
costs.
View of Responsible Officials and Planned Corrective Actions: We agree with the finding and have taken the
actions as outlined in finding 2023‐001 to fully address and improve the control process. Specifically, Agency
management has reviewed the internal processes and enhanced control activities to ensure the mechanic
salaries are accurately reported in the monthly operating reports going forward.