FAC Explorer

Audit 316703

FY End
2023-12-31
Total Expended
$73.77M
Findings
2
Programs
2
Organization: Southwest Ohio Regional Transit Authority (OH)
Year: 2023 Accepted: 2024-08-06
Auditor: Crowe LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
480511 2023-002 Significant Deficiency - L
1056953 2023-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
20.507 Federal Transit_formula Grants $17.51M Yes 0
20.325 Consolidated Rail Infrastructure and Safety Improvements $3.73M Yes 1

Contacts

Name Title Type
LM81VYPTNQL9 Alan Solomon Auditee
5136327560 Christine Torres Auditor
No contacts on file

Notes to SEFA

Title: Summary of Significant Accounting Policies Accounting Policies: General: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of the Authority. The Authority’s reporting entity is defined in Note 1 to the Authority’s financial statements. Basis of Presentation: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Authority under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. 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 Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority. Basis of Accounting: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Cost Rate: The Authority has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: See Notes General: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of the Authority. The Authority’s reporting entity is defined in Note 1 to the Authority’s financial statements. Basis of Presentation: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Authority under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. 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 Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority. Basis of Accounting: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Cost Rate: The Authority has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NON-CASH AND FEDERAL INSURANCE Accounting Policies: General: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of the Authority. The Authority’s reporting entity is defined in Note 1 to the Authority’s financial statements. Basis of Presentation: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Authority under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. 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 Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority. Basis of Accounting: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Cost Rate: The Authority has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: See Notes There were no non-cash awards or Federal Insurance maintained in the current year.

Finding Details

Finding 2023-002
Criteria: Reporting requirements are identified in Part III, Grant Management Terms and Conditions, of the award agreement with the Federal Railroad Administration. The Grantee will submit one completed progress report quarterly (totaling four annually) in the form/format provided by FRA. Additionally, the Grantee will submit the Federal Financial Report (Standard Form 425) on the same schedule as the required quarterly progress report. Finally, the Grantee will comply with the provisions of the Federal Funding Transparency and Accountability Act of 2006. Condition/Context: During our testing of internal controls over reporting, we noted the quarterly progress report and federal financial reports are prepared by the Project Grant Administrator, however there was no separate reviewer. Additionally, for the Federal Funding Accountability and Transparency Act, the submission is no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made. The award was obligated in May 2021; however, the submission did not occur until November 2023, therefore it did not occur timely. Effect: As there was no secondary review of quarterly reports, errors in reporting could go undetected. Cause: Management had not established a proper system of internal control over grant reporting to prevent and detect errors in reporting. Identification as a Repeat Finding: N/A Recommendation: We recommend that the quarterly reporting be prepared and reviewed by two separate individuals for proper segregation of duties. Additionally, we recommend that the Authority track reporting requirements and deadlines to ensure timely submission. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.
Finding 2023-002
Criteria: Reporting requirements are identified in Part III, Grant Management Terms and Conditions, of the award agreement with the Federal Railroad Administration. The Grantee will submit one completed progress report quarterly (totaling four annually) in the form/format provided by FRA. Additionally, the Grantee will submit the Federal Financial Report (Standard Form 425) on the same schedule as the required quarterly progress report. Finally, the Grantee will comply with the provisions of the Federal Funding Transparency and Accountability Act of 2006. Condition/Context: During our testing of internal controls over reporting, we noted the quarterly progress report and federal financial reports are prepared by the Project Grant Administrator, however there was no separate reviewer. Additionally, for the Federal Funding Accountability and Transparency Act, the submission is no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made. The award was obligated in May 2021; however, the submission did not occur until November 2023, therefore it did not occur timely. Effect: As there was no secondary review of quarterly reports, errors in reporting could go undetected. Cause: Management had not established a proper system of internal control over grant reporting to prevent and detect errors in reporting. Identification as a Repeat Finding: N/A Recommendation: We recommend that the quarterly reporting be prepared and reviewed by two separate individuals for proper segregation of duties. Additionally, we recommend that the Authority track reporting requirements and deadlines to ensure timely submission. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.