FAC Explorer

Audit 364214

FY End
2024-09-30
Total Expended
$10.27M
Findings
12
Programs
6
Organization: Saginaw Transit Authority Regional Services (MI)
Year: 2024 Accepted: 2025-08-13
Auditor: Maner Costerisan

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
573499 2024-002 Material Weakness - C
573500 2024-002 Material Weakness - C
573501 2024-002 Material Weakness - C
573502 2024-002 Material Weakness - C
573503 2024-002 Material Weakness - C
573504 2024-002 Material Weakness - C
1149941 2024-002 Material Weakness - C
1149942 2024-002 Material Weakness - C
1149943 2024-002 Material Weakness - C
1149944 2024-002 Material Weakness - C
1149945 2024-002 Material Weakness - C
1149946 2024-002 Material Weakness - C

Programs

ALN Program Spent Major Findings
20.534 Community Project Funding Congressionally Directed Spending $4.28M Yes 0
20.507 Federal Transit Formula Grants $471,971 Yes 1
20.509 Formula Grants for Rural Areas and Tribal Transit Program $251,048 - 0
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $120,000 - 0
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $62,068 - 0
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $4,033 Yes 1

Contacts

Name Title Type
JJKMNNM6FXQ4 Amy Bidwell Auditee
9899074026 William I. Tucker Iv, CPA Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenses are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenses in prior years. Pass-through entity identifying numbers are presented where available. Saginaw Transit Authority Regional Services has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Saginaw Transit Authority Regional Services 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 “Schedule”) includes the federal award activity of Saginaw Transit Authority Regional Services under programs of the federal government for the year ended September 30, 2024. The information in this Schedule is presented in accordance with 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 Saginaw Transit Authority Regional Services, it is not intended to and does not present the financial position or changes in net position of Saginaw Transit Authority Regional Services.
Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenses are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenses in prior years. Pass-through entity identifying numbers are presented where available. Saginaw Transit Authority Regional Services has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Saginaw Transit Authority Regional Services has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenses are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenses in prior years. Pass-through entity identifying numbers are presented where available. Saginaw Transit Authority Regional Services has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-002
Finding Type: Material Noncompliance/Material Weakness in Internal Control over Compliance Programs: Federal Transit Cluster; Federal Transit-Formula Grant, and Bus Facilities Formula Grant Programs; U.S. Department of Transportation; Assistance Listing Number 20.500, 20.507, 20.525, 20.526. Condition: The Authority drew down federal funds before incurring eligible expenditures. Criteria: Federal awards must be drawn on a reimbursement basis in accordance with Uniform Guidance requirements. Cause: The Authority anticipated future amendments to contracts that would retroactively make current expenditures eligible. However, the draws in question were made before these amendments were finalized. Effect: As a result, the Authority did not fully comply with the Uniform Guidance requirements applicable to the referenced grants. Questioned Costs: A total of $1,120,000 was drawn prior to the effective date of the grant amendments. Recommendation: We recommend that the Authority ensure that all expenditures are incurred and eligible prior to requesting reimbursement from federal funds. View of Responsible Officials: We agree with the recommendation and have already implemented procedures to ensure all expenditures are incurred and eligible prior to requesting reimbursement from federal funds.
Finding 2024-002
Finding Type: Material Noncompliance/Material Weakness in Internal Control over Compliance Programs: Federal Transit Cluster; Federal Transit-Formula Grant, and Bus Facilities Formula Grant Programs; U.S. Department of Transportation; Assistance Listing Number 20.500, 20.507, 20.525, 20.526. Condition: The Authority drew down federal funds before incurring eligible expenditures. Criteria: Federal awards must be drawn on a reimbursement basis in accordance with Uniform Guidance requirements. Cause: The Authority anticipated future amendments to contracts that would retroactively make current expenditures eligible. However, the draws in question were made before these amendments were finalized. Effect: As a result, the Authority did not fully comply with the Uniform Guidance requirements applicable to the referenced grants. Questioned Costs: A total of $1,120,000 was drawn prior to the effective date of the grant amendments. Recommendation: We recommend that the Authority ensure that all expenditures are incurred and eligible prior to requesting reimbursement from federal funds. View of Responsible Officials: We agree with the recommendation and have already implemented procedures to ensure all expenditures are incurred and eligible prior to requesting reimbursement from federal funds.
Finding 2024-002
Finding Type: Material Noncompliance/Material Weakness in Internal Control over Compliance Programs: Federal Transit Cluster; Federal Transit-Formula Grant, and Bus Facilities Formula Grant Programs; U.S. Department of Transportation; Assistance Listing Number 20.500, 20.507, 20.525, 20.526. Condition: The Authority drew down federal funds before incurring eligible expenditures. Criteria: Federal awards must be drawn on a reimbursement basis in accordance with Uniform Guidance requirements. Cause: The Authority anticipated future amendments to contracts that would retroactively make current expenditures eligible. However, the draws in question were made before these amendments were finalized. Effect: As a result, the Authority did not fully comply with the Uniform Guidance requirements applicable to the referenced grants. Questioned Costs: A total of $1,120,000 was drawn prior to the effective date of the grant amendments. Recommendation: We recommend that the Authority ensure that all expenditures are incurred and eligible prior to requesting reimbursement from federal funds. View of Responsible Officials: We agree with the recommendation and have already implemented procedures to ensure all expenditures are incurred and eligible prior to requesting reimbursement from federal funds.
Finding 2024-002
Finding Type: Material Noncompliance/Material Weakness in Internal Control over Compliance Programs: Federal Transit Cluster; Federal Transit-Formula Grant, and Bus Facilities Formula Grant Programs; U.S. Department of Transportation; Assistance Listing Number 20.500, 20.507, 20.525, 20.526. Condition: The Authority drew down federal funds before incurring eligible expenditures. Criteria: Federal awards must be drawn on a reimbursement basis in accordance with Uniform Guidance requirements. Cause: The Authority anticipated future amendments to contracts that would retroactively make current expenditures eligible. However, the draws in question were made before these amendments were finalized. Effect: As a result, the Authority did not fully comply with the Uniform Guidance requirements applicable to the referenced grants. Questioned Costs: A total of $1,120,000 was drawn prior to the effective date of the grant amendments. Recommendation: We recommend that the Authority ensure that all expenditures are incurred and eligible prior to requesting reimbursement from federal funds. View of Responsible Officials: We agree with the recommendation and have already implemented procedures to ensure all expenditures are incurred and eligible prior to requesting reimbursement from federal funds.
Finding 2024-002
Finding Type: Material Noncompliance/Material Weakness in Internal Control over Compliance Programs: Federal Transit Cluster; Federal Transit-Formula Grant, and Bus Facilities Formula Grant Programs; U.S. Department of Transportation; Assistance Listing Number 20.500, 20.507, 20.525, 20.526. Condition: The Authority drew down federal funds before incurring eligible expenditures. Criteria: Federal awards must be drawn on a reimbursement basis in accordance with Uniform Guidance requirements. Cause: The Authority anticipated future amendments to contracts that would retroactively make current expenditures eligible. However, the draws in question were made before these amendments were finalized. Effect: As a result, the Authority did not fully comply with the Uniform Guidance requirements applicable to the referenced grants. Questioned Costs: A total of $1,120,000 was drawn prior to the effective date of the grant amendments. Recommendation: We recommend that the Authority ensure that all expenditures are incurred and eligible prior to requesting reimbursement from federal funds. View of Responsible Officials: We agree with the recommendation and have already implemented procedures to ensure all expenditures are incurred and eligible prior to requesting reimbursement from federal funds.
Finding 2024-002
Finding Type: Material Noncompliance/Material Weakness in Internal Control over Compliance Programs: Federal Transit Cluster; Federal Transit-Formula Grant, and Bus Facilities Formula Grant Programs; U.S. Department of Transportation; Assistance Listing Number 20.500, 20.507, 20.525, 20.526. Condition: The Authority drew down federal funds before incurring eligible expenditures. Criteria: Federal awards must be drawn on a reimbursement basis in accordance with Uniform Guidance requirements. Cause: The Authority anticipated future amendments to contracts that would retroactively make current expenditures eligible. However, the draws in question were made before these amendments were finalized. Effect: As a result, the Authority did not fully comply with the Uniform Guidance requirements applicable to the referenced grants. Questioned Costs: A total of $1,120,000 was drawn prior to the effective date of the grant amendments. Recommendation: We recommend that the Authority ensure that all expenditures are incurred and eligible prior to requesting reimbursement from federal funds. View of Responsible Officials: We agree with the recommendation and have already implemented procedures to ensure all expenditures are incurred and eligible prior to requesting reimbursement from federal funds.
Finding 2024-002
Finding Type: Material Noncompliance/Material Weakness in Internal Control over Compliance Programs: Federal Transit Cluster; Federal Transit-Formula Grant, and Bus Facilities Formula Grant Programs; U.S. Department of Transportation; Assistance Listing Number 20.500, 20.507, 20.525, 20.526. Condition: The Authority drew down federal funds before incurring eligible expenditures. Criteria: Federal awards must be drawn on a reimbursement basis in accordance with Uniform Guidance requirements. Cause: The Authority anticipated future amendments to contracts that would retroactively make current expenditures eligible. However, the draws in question were made before these amendments were finalized. Effect: As a result, the Authority did not fully comply with the Uniform Guidance requirements applicable to the referenced grants. Questioned Costs: A total of $1,120,000 was drawn prior to the effective date of the grant amendments. Recommendation: We recommend that the Authority ensure that all expenditures are incurred and eligible prior to requesting reimbursement from federal funds. View of Responsible Officials: We agree with the recommendation and have already implemented procedures to ensure all expenditures are incurred and eligible prior to requesting reimbursement from federal funds.
Finding 2024-002
Finding Type: Material Noncompliance/Material Weakness in Internal Control over Compliance Programs: Federal Transit Cluster; Federal Transit-Formula Grant, and Bus Facilities Formula Grant Programs; U.S. Department of Transportation; Assistance Listing Number 20.500, 20.507, 20.525, 20.526. Condition: The Authority drew down federal funds before incurring eligible expenditures. Criteria: Federal awards must be drawn on a reimbursement basis in accordance with Uniform Guidance requirements. Cause: The Authority anticipated future amendments to contracts that would retroactively make current expenditures eligible. However, the draws in question were made before these amendments were finalized. Effect: As a result, the Authority did not fully comply with the Uniform Guidance requirements applicable to the referenced grants. Questioned Costs: A total of $1,120,000 was drawn prior to the effective date of the grant amendments. Recommendation: We recommend that the Authority ensure that all expenditures are incurred and eligible prior to requesting reimbursement from federal funds. View of Responsible Officials: We agree with the recommendation and have already implemented procedures to ensure all expenditures are incurred and eligible prior to requesting reimbursement from federal funds.
Finding 2024-002
Finding Type: Material Noncompliance/Material Weakness in Internal Control over Compliance Programs: Federal Transit Cluster; Federal Transit-Formula Grant, and Bus Facilities Formula Grant Programs; U.S. Department of Transportation; Assistance Listing Number 20.500, 20.507, 20.525, 20.526. Condition: The Authority drew down federal funds before incurring eligible expenditures. Criteria: Federal awards must be drawn on a reimbursement basis in accordance with Uniform Guidance requirements. Cause: The Authority anticipated future amendments to contracts that would retroactively make current expenditures eligible. However, the draws in question were made before these amendments were finalized. Effect: As a result, the Authority did not fully comply with the Uniform Guidance requirements applicable to the referenced grants. Questioned Costs: A total of $1,120,000 was drawn prior to the effective date of the grant amendments. Recommendation: We recommend that the Authority ensure that all expenditures are incurred and eligible prior to requesting reimbursement from federal funds. View of Responsible Officials: We agree with the recommendation and have already implemented procedures to ensure all expenditures are incurred and eligible prior to requesting reimbursement from federal funds.
Finding 2024-002
Finding Type: Material Noncompliance/Material Weakness in Internal Control over Compliance Programs: Federal Transit Cluster; Federal Transit-Formula Grant, and Bus Facilities Formula Grant Programs; U.S. Department of Transportation; Assistance Listing Number 20.500, 20.507, 20.525, 20.526. Condition: The Authority drew down federal funds before incurring eligible expenditures. Criteria: Federal awards must be drawn on a reimbursement basis in accordance with Uniform Guidance requirements. Cause: The Authority anticipated future amendments to contracts that would retroactively make current expenditures eligible. However, the draws in question were made before these amendments were finalized. Effect: As a result, the Authority did not fully comply with the Uniform Guidance requirements applicable to the referenced grants. Questioned Costs: A total of $1,120,000 was drawn prior to the effective date of the grant amendments. Recommendation: We recommend that the Authority ensure that all expenditures are incurred and eligible prior to requesting reimbursement from federal funds. View of Responsible Officials: We agree with the recommendation and have already implemented procedures to ensure all expenditures are incurred and eligible prior to requesting reimbursement from federal funds.
Finding 2024-002
Finding Type: Material Noncompliance/Material Weakness in Internal Control over Compliance Programs: Federal Transit Cluster; Federal Transit-Formula Grant, and Bus Facilities Formula Grant Programs; U.S. Department of Transportation; Assistance Listing Number 20.500, 20.507, 20.525, 20.526. Condition: The Authority drew down federal funds before incurring eligible expenditures. Criteria: Federal awards must be drawn on a reimbursement basis in accordance with Uniform Guidance requirements. Cause: The Authority anticipated future amendments to contracts that would retroactively make current expenditures eligible. However, the draws in question were made before these amendments were finalized. Effect: As a result, the Authority did not fully comply with the Uniform Guidance requirements applicable to the referenced grants. Questioned Costs: A total of $1,120,000 was drawn prior to the effective date of the grant amendments. Recommendation: We recommend that the Authority ensure that all expenditures are incurred and eligible prior to requesting reimbursement from federal funds. View of Responsible Officials: We agree with the recommendation and have already implemented procedures to ensure all expenditures are incurred and eligible prior to requesting reimbursement from federal funds.
Finding 2024-002
Finding Type: Material Noncompliance/Material Weakness in Internal Control over Compliance Programs: Federal Transit Cluster; Federal Transit-Formula Grant, and Bus Facilities Formula Grant Programs; U.S. Department of Transportation; Assistance Listing Number 20.500, 20.507, 20.525, 20.526. Condition: The Authority drew down federal funds before incurring eligible expenditures. Criteria: Federal awards must be drawn on a reimbursement basis in accordance with Uniform Guidance requirements. Cause: The Authority anticipated future amendments to contracts that would retroactively make current expenditures eligible. However, the draws in question were made before these amendments were finalized. Effect: As a result, the Authority did not fully comply with the Uniform Guidance requirements applicable to the referenced grants. Questioned Costs: A total of $1,120,000 was drawn prior to the effective date of the grant amendments. Recommendation: We recommend that the Authority ensure that all expenditures are incurred and eligible prior to requesting reimbursement from federal funds. View of Responsible Officials: We agree with the recommendation and have already implemented procedures to ensure all expenditures are incurred and eligible prior to requesting reimbursement from federal funds.