FAC Explorer

Audit 346790

FY End
2024-09-30
Total Expended
$29.59M
Findings
2
Programs
4
Organization: Fort Worth Transportation Authority (TX)
Year: 2024 Accepted: 2025-03-19
Auditor: Weaver and Tidwell LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
528728 2024-002 Significant Deficiency - BCG
1105170 2024-002 Significant Deficiency - BCG

Programs

ALN Program Spent Major Findings
20.507 Federal Transit_formula Grants $6.26M Yes 0
20.500 Federal Transit_capital Investment Grants $1.69M Yes 1
97.075 Rail and Transit Security Grant Program $245,758 - 0
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $149,204 - 0

Contacts

Name Title Type
GG83JKUFM1G1 Greg Jordan Auditee
8172158718 Jackie Gonzalez Auditor
No contacts on file

Notes to SEFA

Title: General Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of Fort Worth Transportation Authority (the Authority). The Authority’s reporting entity is defined in Note 1 to the Authority’s financial statements. The accompanying schedule of expenditures of federal awards (the SEFA) includes the federal award activity of the Authority under programs of the federal government for the year ended September 30, 2024. 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 SEFA 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. Expenditures reported on the SEFA 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. During the fiscal year ended September 30, 2024, the Authority was awarded grants under Federal Assistance Listing Number 20.500, 20.507, and 20.513, which included reimbursement for expenditures incurred in previous fiscal years. The total amount of expenditures incurred in a prior year reported on the fiscal year SEFA under these grants is $20,592,010. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of Fort Worth Transportation Authority (the Authority). The Authority’s reporting entity is defined in Note 1 to the Authority’s financial statements.
Title: Basis of Presentation Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of Fort Worth Transportation Authority (the Authority). The Authority’s reporting entity is defined in Note 1 to the Authority’s financial statements. The accompanying schedule of expenditures of federal awards (the SEFA) includes the federal award activity of the Authority under programs of the federal government for the year ended September 30, 2024. 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 SEFA 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. Expenditures reported on the SEFA 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. During the fiscal year ended September 30, 2024, the Authority was awarded grants under Federal Assistance Listing Number 20.500, 20.507, and 20.513, which included reimbursement for expenditures incurred in previous fiscal years. The total amount of expenditures incurred in a prior year reported on the fiscal year SEFA under these grants is $20,592,010. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the SEFA) includes the federal award activity of the Authority under programs of the federal government for the year ended September 30, 2024. 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 SEFA 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.
Title: Basis of Accounting Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of Fort Worth Transportation Authority (the Authority). The Authority’s reporting entity is defined in Note 1 to the Authority’s financial statements. The accompanying schedule of expenditures of federal awards (the SEFA) includes the federal award activity of the Authority under programs of the federal government for the year ended September 30, 2024. 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 SEFA 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. Expenditures reported on the SEFA 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. During the fiscal year ended September 30, 2024, the Authority was awarded grants under Federal Assistance Listing Number 20.500, 20.507, and 20.513, which included reimbursement for expenditures incurred in previous fiscal years. The total amount of expenditures incurred in a prior year reported on the fiscal year SEFA under these grants is $20,592,010. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the SEFA 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. During the fiscal year ended September 30, 2024, the Authority was awarded grants under Federal Assistance Listing Number 20.500, 20.507, and 20.513, which included reimbursement for expenditures incurred in previous fiscal years. The total amount of expenditures incurred in a prior year reported on the fiscal year SEFA under these grants is $20,592,010.
Title: De Minimis Cost Rate Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of Fort Worth Transportation Authority (the Authority). The Authority’s reporting entity is defined in Note 1 to the Authority’s financial statements. The accompanying schedule of expenditures of federal awards (the SEFA) includes the federal award activity of the Authority under programs of the federal government for the year ended September 30, 2024. 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 SEFA 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. Expenditures reported on the SEFA 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. During the fiscal year ended September 30, 2024, the Authority was awarded grants under Federal Assistance Listing Number 20.500, 20.507, and 20.513, which included reimbursement for expenditures incurred in previous fiscal years. The total amount of expenditures incurred in a prior year reported on the fiscal year SEFA under these grants is $20,592,010. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Authority has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Reconciliation Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of Fort Worth Transportation Authority (the Authority). The Authority’s reporting entity is defined in Note 1 to the Authority’s financial statements. The accompanying schedule of expenditures of federal awards (the SEFA) includes the federal award activity of the Authority under programs of the federal government for the year ended September 30, 2024. 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 SEFA 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. Expenditures reported on the SEFA 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. During the fiscal year ended September 30, 2024, the Authority was awarded grants under Federal Assistance Listing Number 20.500, 20.507, and 20.513, which included reimbursement for expenditures incurred in previous fiscal years. The total amount of expenditures incurred in a prior year reported on the fiscal year SEFA under these grants is $20,592,010. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Grant revenue per the accompanying SEFA is recorded the statement of revenue, expenses and changes in net position for year ended September 30, 2024 as follows:

Finding Details

Finding 2024-002
Finding 2024-002: Matching Major Federal Program – Federal Transit Cluster Compliance Requirements: Allowable Costs and Cost Principles, Cash Management, Matching Criteria: In accordance with the grant agreement and Uniform Guidance, effective internal controls must be in place to prevent and detect noncompliance. This requirement extends to costs requested for reimbursement under federal grants. Condition: (X) Compliance Finding (X) Significant Deficiency ( ) Material Weakness Context/Cause: Grant agreements were not reviewed in enough detail to assess appropriateness of rate being charged to the major program prior to submission of request for reimbursement. Request for reimbursement was up to 51% of total expenses incurred but instead a reimbursement rate of 80% was used for grant 2017-001. Effect and Questioned Costs: The absence of detailed review related to cost reimbursement rates significantly increases the risk that misstatements due to error or fraud may occur and not be detected timely. Known questioned costs are $613,075. Likely questioned costs are indeterminable. Recommendation: Management should reinforce the internal controls in place to ensure all reimbursement rates are reviewed on a monthly basis as part of the month end close process prior to grant billing. Responsible Official’s Response: See Corrective Action Plan
Finding 2024-002
Finding 2024-002: Matching Major Federal Program – Federal Transit Cluster Compliance Requirements: Allowable Costs and Cost Principles, Cash Management, Matching Criteria: In accordance with the grant agreement and Uniform Guidance, effective internal controls must be in place to prevent and detect noncompliance. This requirement extends to costs requested for reimbursement under federal grants. Condition: (X) Compliance Finding (X) Significant Deficiency ( ) Material Weakness Context/Cause: Grant agreements were not reviewed in enough detail to assess appropriateness of rate being charged to the major program prior to submission of request for reimbursement. Request for reimbursement was up to 51% of total expenses incurred but instead a reimbursement rate of 80% was used for grant 2017-001. Effect and Questioned Costs: The absence of detailed review related to cost reimbursement rates significantly increases the risk that misstatements due to error or fraud may occur and not be detected timely. Known questioned costs are $613,075. Likely questioned costs are indeterminable. Recommendation: Management should reinforce the internal controls in place to ensure all reimbursement rates are reviewed on a monthly basis as part of the month end close process prior to grant billing. Responsible Official’s Response: See Corrective Action Plan