FAC Explorer

Audit 311090

FY End
2023-09-30
Total Expended
$1.48M
Findings
2
Programs
1
Organization: M-1 Rail and Affiliates (MI)
Year: 2023 Accepted: 2024-06-29
Auditor: Deloitte & Touche LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
404706 2023-001 Significant Deficiency - B
981148 2023-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
20.507 Federal Transit_formula Grants $1.48M Yes 1

Contacts

Name Title Type
LP7QN5PL3SF4 Kenneth Dilaura Auditee
5868548115 Marilyn Steffens Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the actual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance The accompanying Consolidated Supplemental Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of M-1 RAIL and Affiliates (the “Organization”) under programs of the federal government for the year ended September 30, 2023. The information in the Schedule is presented in accordance with the Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
Title: Summary of Signigicant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the actual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance Expenditures reported on the Schedule are reported on the actual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the actual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance The Organization does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance

Finding Details

Finding 2023-001
2023-001: Significant Deficiency in Internal Controls over Compliance – Urbanized Area Formula Program – Activities Allowed and Allowable Costs Federal Program and Assistance Listing Number (ALN) – Department of Transportation ALN 20.507 Urbanized Area Formula Program Criteria – In accordance with Uniform Guidance, the Organization is required to establish and maintain effective internal controls over compliance that provide reasonable assurance that the Organization is managing the Federal award in compliance with Federal statues, regulations, and the terms and conditions of the Federal award. A structured review process, which includes retention of evidence to prove the review operated as intended, is a key element of any effective internal control framework designed to prevent or detect noncompliance. Condition – During our assessment of internal controls over compliance, no evidence of the review of payroll expenditures for the year ended September 30, 2021 was available at the time of our audit. Cause – Due to the high turnover of management and accounting personnel, the Organization insufficiently maintained documentation that demonstrated the Organization’s review process over payroll in place for the year ended September 30, 2021. Effect – The failure to maintain adequate evidence of the controls being designed, implemented, and operating could lead to noncompliance with grant requirements. Repeat Finding – No. Questioned Cost—None Context – Evidence of the review of payroll expenditures operating in the year ended September 30, 2021, was not available due to the turnover of management and accounting personnel involved in the review process. Recommendations – Management should ensure that they have a documented control that includes required evidence retention for reviewing and approving employee time and payroll expenditures. Views of Responsible Officials— Implemented June 2022, employees scan an access card in the Time Clock system when they arrive and leave. Time sheets are then reviewed and approved by supervisors in Time Clock at the end of each pay period. Following this approval, the CFO reviews the time sheets before submitted to CoStaff. See the Corrective Action Plan for more information.
Finding 2023-001
2023-001: Significant Deficiency in Internal Controls over Compliance – Urbanized Area Formula Program – Activities Allowed and Allowable Costs Federal Program and Assistance Listing Number (ALN) – Department of Transportation ALN 20.507 Urbanized Area Formula Program Criteria – In accordance with Uniform Guidance, the Organization is required to establish and maintain effective internal controls over compliance that provide reasonable assurance that the Organization is managing the Federal award in compliance with Federal statues, regulations, and the terms and conditions of the Federal award. A structured review process, which includes retention of evidence to prove the review operated as intended, is a key element of any effective internal control framework designed to prevent or detect noncompliance. Condition – During our assessment of internal controls over compliance, no evidence of the review of payroll expenditures for the year ended September 30, 2021 was available at the time of our audit. Cause – Due to the high turnover of management and accounting personnel, the Organization insufficiently maintained documentation that demonstrated the Organization’s review process over payroll in place for the year ended September 30, 2021. Effect – The failure to maintain adequate evidence of the controls being designed, implemented, and operating could lead to noncompliance with grant requirements. Repeat Finding – No. Questioned Cost—None Context – Evidence of the review of payroll expenditures operating in the year ended September 30, 2021, was not available due to the turnover of management and accounting personnel involved in the review process. Recommendations – Management should ensure that they have a documented control that includes required evidence retention for reviewing and approving employee time and payroll expenditures. Views of Responsible Officials— Implemented June 2022, employees scan an access card in the Time Clock system when they arrive and leave. Time sheets are then reviewed and approved by supervisors in Time Clock at the end of each pay period. Following this approval, the CFO reviews the time sheets before submitted to CoStaff. See the Corrective Action Plan for more information.