Audit 356200

FY End
2024-12-31
Total Expended
$74.09M
Findings
2
Programs
1
Year: 2024 Accepted: 2025-05-13

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
560268 2024-001 Significant Deficiency - P
1136710 2024-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
20.316 Railroad Rehabilitation and Improvement Financing Program $74.09M Yes 1

Contacts

Name Title Type
T541XAGSP933 Courtney Kvachkoff Auditee
2196443504 James Higgins Auditor
No contacts on file

Notes to SEFA

Title: Organziation and nature of activities Accounting Policies: Expenditures reported on the schedule are reported on the cash basis of reporting. Such expenditures are recognized following the cost principles contained in Uniform Guidance. The RDA has elected not to use the 10-percent de minirnis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: A de minimis cost rate was not used. Indirect costs were not included. The Northwest Indiana Regional Development Authority (the "RDA" or the "Authority") was established as a separate body corporate and politic by HEA 1120-2005 which identified the board selection process, powers, duties, and sources of funding. The RDA operates to stimulate the economy and quality of life in Northwest Indiana by assisting in the coordination of local projects with local authorities, districts, and commissions. The RDA performs this mission through grants, loans, loan guarantees, or by entering into a lease of a project.
Title: Basis of presentation Accounting Policies: Expenditures reported on the schedule are reported on the cash basis of reporting. Such expenditures are recognized following the cost principles contained in Uniform Guidance. The RDA has elected not to use the 10-percent de minirnis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: A de minimis cost rate was not used. Indirect costs were not included. The accompanying Schedule of Expenditures of Federal Awards ("schedule") includes the federal expenditures related to the U.S. Department of Transportation's Railroad Rehabilitation and Improvement Financing Program for the year ended December 31, 2024. The information on this schedule is prepared in accordance with the requirements of 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 RDA, it is not intended to and does not present the financial position, changes in net position, or cash flows of the RDA.
Title: Summary of significant accounting policies Accounting Policies: Expenditures reported on the schedule are reported on the cash basis of reporting. Such expenditures are recognized following the cost principles contained in Uniform Guidance. The RDA has elected not to use the 10-percent de minirnis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: A de minimis cost rate was not used. Indirect costs were not included. Expenditures reported on the schedule are reported on the cash basis of reporting. Such expenditures are recognized following the cost principles contained in Uniform Guidance. The RDA has elected not to use the 10-percent de minirnis indirect cost rate as allowed under the Uniform Guidance.
Title: Railroad Rehabilitation and Improvement Financing Program Accounting Policies: Expenditures reported on the schedule are reported on the cash basis of reporting. Such expenditures are recognized following the cost principles contained in Uniform Guidance. The RDA has elected not to use the 10-percent de minirnis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: A de minimis cost rate was not used. Indirect costs were not included. The RDA is the fiscal officer of the projects that are part of the Railroad Rehabilitation and Improvement Financing Program, and the Indiana Finance Authority acts as the issuer of any financing. Funds are held in and disbursed from a revenue trust. At January 1, 2023, the balance of associated loan was $0 and at December 31, 2023 the balance was $228,561,129, including capitalized interest of $1, 11 7 ,900. The balance of the loan as of December 31, 2024 was $239,957,331, including capitalized interest of $9,172,521. The amount of interest paid was $0 for the years ended December 31, 2024 and 2023.

Finding Details

Certain amounts were not properly recorded as payable and receivable at December 31, 2024. The financial position of the RDA could be inaccurately presented due to these amounts not being included in the December 31, 2024 financial position. Accounts payable and accounts receivable were adjusted with the audit.
Certain amounts were not properly recorded as payable and receivable at December 31, 2024. The financial position of the RDA could be inaccurately presented due to these amounts not being included in the December 31, 2024 financial position. Accounts payable and accounts receivable were adjusted with the audit.