FAC Explorer

Audit 358795

FY End
2024-09-30
Total Expended
$983,090
Findings
6
Programs
3
Organization: Pioneer Resources, Inc. (MI)
Year: 2024 Accepted: 2025-06-13
Auditor: Brickley Delong PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
564662 2024-004 Significant Deficiency - F
564663 2024-003 Material Weakness - AB
564664 2024-003 Material Weakness - AB
1141104 2024-004 Significant Deficiency - F
1141105 2024-003 Material Weakness - AB
1141106 2024-003 Material Weakness - AB

Programs

ALN Program Spent Major Findings
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $856,979 Yes 1
20.521 New Freedom Program $81,186 Yes 1
20.516 Job Access and Reverse Commute Program $44,925 Yes 1

Contacts

Name Title Type
JQT4DQXPNE47 Jill Bonthuis Auditee
2315574241 Jennifer Wheeler Auditor
No contacts on file

Notes to SEFA

Title: 1 Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “schedule”) includes the federal award activity of the Organization 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 schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the net assets or change in net assets of the Organization. Please see the financial statement footnotes for the significant accounting policies used in preparing this schedule. 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. 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. The Organization is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “schedule”) includes the federal award activity of the Organization 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 schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the net assets or change in net assets of the Organization.
Title: 2 Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “schedule”) includes the federal award activity of the Organization 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 schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the net assets or change in net assets of the Organization. Please see the financial statement footnotes for the significant accounting policies used in preparing this schedule. 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. 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. The Organization is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Please see the financial statement footnotes for the significant accounting policies used in preparing this schedule. 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. 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. The Organization is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: 3 Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “schedule”) includes the federal award activity of the Organization 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 schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the net assets or change in net assets of the Organization. Please see the financial statement footnotes for the significant accounting policies used in preparing this schedule. 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. 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. The Organization is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization is not using the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Reconciliation of revenues from federal sources per financial statements and expenditures per single audit report Schedule of Expenditures of Federal Awards. See the accompanying table in the attached Notes to SEFA.

Finding Details

Finding 2024-004
Finding 2024-004: Transit Services Programs Cluster Equipment Procedures U.S. Department of Transportation Pass-through Entity: Michigan Department of Transportation Assistance Listing Numbers: 20.513 Award Numbers: 206931NI, 206933NI and 216609NI Award Year End: September 30, 2024 Specific Requirements: (F.) Equipment Criteria: Section 200.313(d) of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a non-federal entity to (1) maintain property records that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds the title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property, (2) perform a physical inventory of the property and reconcile the results with the property records at least once every two years, (3) develop a control system to ensure adequate safeguards to prevent loss, damage, or theft of the property with any suspected loss, damage or theft investigated. Questioned Costs: None. Condition: The fixed asset listing maintained by the Organization does not specify which assets are acquired with federal funds, and the listing lacks certain required elements. In addition, the physical inventory performed was not reconciled with the fixed asset listing as required. Context: The Organization maintains a listing of fixed assets that it owns. We noted that the listing properly contained descriptions of the property, identification numbers, locations, acquisition dates, and costs of the property. However, the fixed asset listing was lacking federal funding sources, percentages of federal participation in the costs of fixed assets acquired under federal awards, and the conditions of the property as required. In addition, while a physical inventory of the assets was performed and documented within the required two-year frequency, the Organization did not document the condition of the assets or reconcile the results with the fixed asset listing as required. The sample was not a statistically valid sample, and the matter appears to be a systemic condition. Effect: A control system has not been fully implemented to safeguard the fixed assets to prevent loss, damage or theft and promptly investigate missing items. Failure to maintain adequate detailed fixed asset records with all required elements and failure to reconcile the physical inventory with the fixed asset listing could lead to the loss or misappropriation of these assets. Cause: The Organization was unaware of the requirements to maintain adequate detailed fixed asset records with specified elements, document the condition of the assets, and reconcile its physical inventory results with property records. As a result, the Organization did not have proper policies and procedures in place to ensure that these required steps were completed. Repeat Finding: This is not a repeat finding. Recommendation: The Organization should establish procedures to require the maintenance of detailed fixed asset records that include all specified elements. In addition, the Organization should document the condition of the assets and reconcile the results of the physical inventory with fixed asset records at least once every two years to help prevent loss, damage, or theft of the property. Views of Responsible Officials: The Organization agrees with this finding.
Finding 2024-003
Finding 2024-003: MATERIAL WEAKNESS—Transit Services Programs Cluster Payroll Procedures U.S. Department of Transportation Pass-through Entity: Michigan Department of Transportation Assistance Listing Numbers: 20.516 and 20.521 Award Numbers: 215509NI, 215541NI, 220776NI and 221303NI Award Year End: September 30, 2024 Specific Requirements: (A.) Activities Allowed Unallowed, (B.) Allowable Costs/Cost Principles Criteria: Section 200.430 of the cost principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that a) the charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed; b) the records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; c) budget estimates may be used for interim accounting purposes provided that the estimates are reasonable, significant changes in the corresponding work activity are identified and entered into the accounting records in a timely manner, and necessary adjustments are made to the accounting records based on an after-the-fact review of interim charges to federal awards. In addition, accounting records should be retained in accordance with the Organization’s written record retention policy. Such records should be timely and properly filed so that they can be readily located when needed. Questioned Costs: Questioned costs total $48,617 for payroll and related benefits for all employees charged to the federal program cluster for the first three quarters of the fiscal year. Condition: The Organization was unable to provide supporting documentation for the payroll costs for all employees charged to the federal program cluster for the first three quarters of the fiscal year. Context: For the first three quarters of the fiscal year, the Organization was unable to identify the employees charged to the federal program cluster or provide timecards to support the payroll expenses for any of the employees charged to the program cluster. However, for the entire fourth quarter, we recomputed the payroll expenses for all six employees charged to the program cluster. Timecards were readily available for testing. They identified the portions of time worked in the federal program cluster, and they were timely approved by supervisors with documented approval. Effect: Failure to prepare and maintain proper payroll records could cause improper amounts to be charged to the federal program cluster, and certain expenses charged to the cluster could be disallowed. Cause: The Organization experienced personnel changes within key positions in the business office during the year, leaving the Organization understaffed and unable to properly follow its established procedures for filing and maintaining payroll records. Repeat Finding: This is not a repeat finding. Recommendation: The Organization should follow its established procedures to ensure that payroll records, including manual and electronic, are properly and timely filed and maintained in accordance with the Organization’s written record retention policy so that they can be readily located when needed. Views of Responsible Officials: The Organization agrees with this finding.
Finding 2024-003
Finding 2024-003: MATERIAL WEAKNESS—Transit Services Programs Cluster Payroll Procedures U.S. Department of Transportation Pass-through Entity: Michigan Department of Transportation Assistance Listing Numbers: 20.516 and 20.521 Award Numbers: 215509NI, 215541NI, 220776NI and 221303NI Award Year End: September 30, 2024 Specific Requirements: (A.) Activities Allowed Unallowed, (B.) Allowable Costs/Cost Principles Criteria: Section 200.430 of the cost principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that a) the charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed; b) the records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; c) budget estimates may be used for interim accounting purposes provided that the estimates are reasonable, significant changes in the corresponding work activity are identified and entered into the accounting records in a timely manner, and necessary adjustments are made to the accounting records based on an after-the-fact review of interim charges to federal awards. In addition, accounting records should be retained in accordance with the Organization’s written record retention policy. Such records should be timely and properly filed so that they can be readily located when needed. Questioned Costs: Questioned costs total $48,617 for payroll and related benefits for all employees charged to the federal program cluster for the first three quarters of the fiscal year. Condition: The Organization was unable to provide supporting documentation for the payroll costs for all employees charged to the federal program cluster for the first three quarters of the fiscal year. Context: For the first three quarters of the fiscal year, the Organization was unable to identify the employees charged to the federal program cluster or provide timecards to support the payroll expenses for any of the employees charged to the program cluster. However, for the entire fourth quarter, we recomputed the payroll expenses for all six employees charged to the program cluster. Timecards were readily available for testing. They identified the portions of time worked in the federal program cluster, and they were timely approved by supervisors with documented approval. Effect: Failure to prepare and maintain proper payroll records could cause improper amounts to be charged to the federal program cluster, and certain expenses charged to the cluster could be disallowed. Cause: The Organization experienced personnel changes within key positions in the business office during the year, leaving the Organization understaffed and unable to properly follow its established procedures for filing and maintaining payroll records. Repeat Finding: This is not a repeat finding. Recommendation: The Organization should follow its established procedures to ensure that payroll records, including manual and electronic, are properly and timely filed and maintained in accordance with the Organization’s written record retention policy so that they can be readily located when needed. Views of Responsible Officials: The Organization agrees with this finding.
Finding 2024-004
Finding 2024-004: Transit Services Programs Cluster Equipment Procedures U.S. Department of Transportation Pass-through Entity: Michigan Department of Transportation Assistance Listing Numbers: 20.513 Award Numbers: 206931NI, 206933NI and 216609NI Award Year End: September 30, 2024 Specific Requirements: (F.) Equipment Criteria: Section 200.313(d) of the Cost Principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a non-federal entity to (1) maintain property records that include a description of the property, a serial number or other identification number, the source of funding for the property, who holds the title, the acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property, (2) perform a physical inventory of the property and reconcile the results with the property records at least once every two years, (3) develop a control system to ensure adequate safeguards to prevent loss, damage, or theft of the property with any suspected loss, damage or theft investigated. Questioned Costs: None. Condition: The fixed asset listing maintained by the Organization does not specify which assets are acquired with federal funds, and the listing lacks certain required elements. In addition, the physical inventory performed was not reconciled with the fixed asset listing as required. Context: The Organization maintains a listing of fixed assets that it owns. We noted that the listing properly contained descriptions of the property, identification numbers, locations, acquisition dates, and costs of the property. However, the fixed asset listing was lacking federal funding sources, percentages of federal participation in the costs of fixed assets acquired under federal awards, and the conditions of the property as required. In addition, while a physical inventory of the assets was performed and documented within the required two-year frequency, the Organization did not document the condition of the assets or reconcile the results with the fixed asset listing as required. The sample was not a statistically valid sample, and the matter appears to be a systemic condition. Effect: A control system has not been fully implemented to safeguard the fixed assets to prevent loss, damage or theft and promptly investigate missing items. Failure to maintain adequate detailed fixed asset records with all required elements and failure to reconcile the physical inventory with the fixed asset listing could lead to the loss or misappropriation of these assets. Cause: The Organization was unaware of the requirements to maintain adequate detailed fixed asset records with specified elements, document the condition of the assets, and reconcile its physical inventory results with property records. As a result, the Organization did not have proper policies and procedures in place to ensure that these required steps were completed. Repeat Finding: This is not a repeat finding. Recommendation: The Organization should establish procedures to require the maintenance of detailed fixed asset records that include all specified elements. In addition, the Organization should document the condition of the assets and reconcile the results of the physical inventory with fixed asset records at least once every two years to help prevent loss, damage, or theft of the property. Views of Responsible Officials: The Organization agrees with this finding.
Finding 2024-003
Finding 2024-003: MATERIAL WEAKNESS—Transit Services Programs Cluster Payroll Procedures U.S. Department of Transportation Pass-through Entity: Michigan Department of Transportation Assistance Listing Numbers: 20.516 and 20.521 Award Numbers: 215509NI, 215541NI, 220776NI and 221303NI Award Year End: September 30, 2024 Specific Requirements: (A.) Activities Allowed Unallowed, (B.) Allowable Costs/Cost Principles Criteria: Section 200.430 of the cost principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that a) the charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed; b) the records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; c) budget estimates may be used for interim accounting purposes provided that the estimates are reasonable, significant changes in the corresponding work activity are identified and entered into the accounting records in a timely manner, and necessary adjustments are made to the accounting records based on an after-the-fact review of interim charges to federal awards. In addition, accounting records should be retained in accordance with the Organization’s written record retention policy. Such records should be timely and properly filed so that they can be readily located when needed. Questioned Costs: Questioned costs total $48,617 for payroll and related benefits for all employees charged to the federal program cluster for the first three quarters of the fiscal year. Condition: The Organization was unable to provide supporting documentation for the payroll costs for all employees charged to the federal program cluster for the first three quarters of the fiscal year. Context: For the first three quarters of the fiscal year, the Organization was unable to identify the employees charged to the federal program cluster or provide timecards to support the payroll expenses for any of the employees charged to the program cluster. However, for the entire fourth quarter, we recomputed the payroll expenses for all six employees charged to the program cluster. Timecards were readily available for testing. They identified the portions of time worked in the federal program cluster, and they were timely approved by supervisors with documented approval. Effect: Failure to prepare and maintain proper payroll records could cause improper amounts to be charged to the federal program cluster, and certain expenses charged to the cluster could be disallowed. Cause: The Organization experienced personnel changes within key positions in the business office during the year, leaving the Organization understaffed and unable to properly follow its established procedures for filing and maintaining payroll records. Repeat Finding: This is not a repeat finding. Recommendation: The Organization should follow its established procedures to ensure that payroll records, including manual and electronic, are properly and timely filed and maintained in accordance with the Organization’s written record retention policy so that they can be readily located when needed. Views of Responsible Officials: The Organization agrees with this finding.
Finding 2024-003
Finding 2024-003: MATERIAL WEAKNESS—Transit Services Programs Cluster Payroll Procedures U.S. Department of Transportation Pass-through Entity: Michigan Department of Transportation Assistance Listing Numbers: 20.516 and 20.521 Award Numbers: 215509NI, 215541NI, 220776NI and 221303NI Award Year End: September 30, 2024 Specific Requirements: (A.) Activities Allowed Unallowed, (B.) Allowable Costs/Cost Principles Criteria: Section 200.430 of the cost principles of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that a) the charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed; b) the records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; c) budget estimates may be used for interim accounting purposes provided that the estimates are reasonable, significant changes in the corresponding work activity are identified and entered into the accounting records in a timely manner, and necessary adjustments are made to the accounting records based on an after-the-fact review of interim charges to federal awards. In addition, accounting records should be retained in accordance with the Organization’s written record retention policy. Such records should be timely and properly filed so that they can be readily located when needed. Questioned Costs: Questioned costs total $48,617 for payroll and related benefits for all employees charged to the federal program cluster for the first three quarters of the fiscal year. Condition: The Organization was unable to provide supporting documentation for the payroll costs for all employees charged to the federal program cluster for the first three quarters of the fiscal year. Context: For the first three quarters of the fiscal year, the Organization was unable to identify the employees charged to the federal program cluster or provide timecards to support the payroll expenses for any of the employees charged to the program cluster. However, for the entire fourth quarter, we recomputed the payroll expenses for all six employees charged to the program cluster. Timecards were readily available for testing. They identified the portions of time worked in the federal program cluster, and they were timely approved by supervisors with documented approval. Effect: Failure to prepare and maintain proper payroll records could cause improper amounts to be charged to the federal program cluster, and certain expenses charged to the cluster could be disallowed. Cause: The Organization experienced personnel changes within key positions in the business office during the year, leaving the Organization understaffed and unable to properly follow its established procedures for filing and maintaining payroll records. Repeat Finding: This is not a repeat finding. Recommendation: The Organization should follow its established procedures to ensure that payroll records, including manual and electronic, are properly and timely filed and maintained in accordance with the Organization’s written record retention policy so that they can be readily located when needed. Views of Responsible Officials: The Organization agrees with this finding.