Audit 367202

FY End
2024-12-31
Total Expended
$13.16M
Findings
6
Programs
4
Year: 2024 Accepted: 2025-09-24

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
1154862 2024-003 Material Weakness Yes I
1154863 2024-004 Material Weakness Yes I
1154864 2024-005 Material Weakness Yes I
1154865 2024-003 Material Weakness Yes I
1154866 2024-004 Material Weakness Yes I
1154867 2024-005 Material Weakness Yes I

Contacts

Name Title Type
DENKZH7GEQY4 James Karasek Auditee
4192455200 Kristin Hunt Auditor
No contacts on file

Notes to SEFA

The Authority has elected not to use the 10-percent de minimis indirect cost rate through 9/30/2024. The Authority did not use the 15 percent de minimis indirect cost rate which was effective as of 10/1/2024 under the Uniform Guidance.
The Authority passes certain federal awards received from the U.S. Department of Transportation to other governments or not-for-profit agencies (subrecipients). As Note 2 describes, the Authority reports expenditures of Federal awards to subrecipients when paid on an accrual basis. As a subrecipient, the Authority has certain compliance responsibilities, such as monitoring its subrecipients to help assure they use these subawards as authorized by laws, regulations, and the provisions of contracts or grant agreements, and that subrecipients achieve the awards performance goals.
Certain Federal programs require the Authority to contribute non-Federal funds (matching funds) to support the Federally funded programs. The Authority has met its matching requirements. The Schedule does not include the expenditure of non-Federal matching funds.
The following reconciles the intergovernmental revenues report in the December 31, 2024, basic financial statements to the expenditures of the Authority administered federal programs reported on the Schedule of Expenditures of Federal Awards: See the Notes to the SEFA for chart/table

Finding Details

Assistance Listing, Federal Agency, and Program Name 20.500, 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year All Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2023-005 Criteria 2 CFR 200.320 provides standards for acceptable methods of procurement, which includes the following required support for the contract price: Informal procurement methods (micro purchases) may be awarded without submitting competitive price or rate quotations if the non federal entity considers the price to be reasonable based on research, experience, purchase history, or other information and documents in files accordingly. Small purchases require that price or rate quotations be obtained and documented to support the procurement decisions. Formal procurement methods require documentation of sealed bids, proposals, or rationale for the use of non competitive procurements, such as single source and emergency procurements Condition During our testing, we identified two contracts that did not have adequate documentation to support the basis for the contract price. Questioned Costs $222,703 Identification of How Questioned Costs Were Computed The sum of the expenditures incurred under the contracts for the two exceptions identified in our testing was used to calculate questioned costs. Context Of the 33 procurements selected for testing, there were two contracts subject to formal procurement methods that had no evidence to support whether sealed bids, proposals, or noncompetitive procurements were used to support the contract price, one of which was a sole source contract. Cause and Effect The Authority experienced turnover in personnel that resulted in it being unable to locate documentation to support compliance for the two exceptions identified in our testing. Recommendation We recommend that internal controls be put in place to ensure that all procurements adhere to 2 CFR 200.320 and maintain documentation to support compliance and supervisory review. Views of Responsible Officials and Corrective Action Plan Effective 6/1/2025, TARTA implemented a new ERP system that will allow us to electronically control and verify all purchases in accordance with 2 CFR 200.32 standards for acceptable methods of procurement going forward.
Assistance Listing, Federal Agency, and Program Name 20.500, 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year All Pass through Entity Not applicable Finding Type Material weakness Repeat Finding No Criteria 2 CFR 200.305 requires that for reimbursement based grants, the entity should incur the costs for which reimbursement was requested prior to the date of the reimbursement request. Condition During our testing, we identified one reimbursement request that included a check that was not paid as it was voided and paid with a subsequent check, which was also requested for reimbursement. Questioned Costs $3,819 If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported Not applicable Identification of How Questioned Costs Were Computed The sum of the expenditures incurred under the contracts for the exception identified in our testing was used to calculate questioned costs. Context Of the 9 draws selected for testing, there was one draw that included one invoice submitted for reimbursement twice on the same draw as it was incorrectly entered into the system. Cause and Effect A check was voided and expense was never paid as the invoice was incorrectly coded to the incorrect vendor, but was still included as a check on the reimbursement request. Recommendation We recommend that the internal controls be put in place to ensure that there are no duplicate expenses being submitted for reimbursement. Views of Responsible Officials and Planned Corrective Actions Effective 6/1/2025, TARTA implemented a new ERP system that will allow us to electronically control, accumulated, and monitor all transaction related to our grant draws in accordance with 2 CFR 200.305 going forward.
Assistance Listing, Federal Agency, and Program Name 20.500, 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year All Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2023-006 Criteria The Authority should ensure there is a process in place prior to entering into contracts with vendors in excess of $25,000 to verify such contractors are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300. Condition There was no evidence to support that the Authority performed procedures to verify that the vendors were not suspended, debarred, or otherwise excluded prior to entering into contracts for 18 contracts within our testing population. Questioned Costs Not applicable Identification of How Questioned Costs Were Computed Not applicable Context Of the 33 procurements selected for testing, 18 procurements did not contain evidence of either (1) a search performed on Sam.gov to determine if the vendor was suspended, debarred, or otherwise excluded; (2) a certification from the contractor attesting that they are not suspended, debarred, or otherwise excluded; or (3) adding a clause or condition to the covered transaction with that vendor. Cause and Effect The Authority has experienced turnover that resulted in it being unable to locate documentation to support compliance. Recommendation We recommend that internal controls be put in place to ensure that the required verification is performed, documented, and reviewed by a supervisor prior to entering into contracts with vendors. Views of Responsible Officials and Planned Corrective Actions Effective 6/1/2025, TARTA implemented a new ERP system that will allow us to indicate and upload verification that a vendor was checked for suspension, debarment, or exclusions prior to entering into a contract in accordance with 2 CFR 180.300, going forward.
Assistance Listing, Federal Agency, and Program Name 20.500, 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year All Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2023-005 Criteria 2 CFR 200.320 provides standards for acceptable methods of procurement, which includes the following required support for the contract price: Informal procurement methods (micro purchases) may be awarded without submitting competitive price or rate quotations if the non federal entity considers the price to be reasonable based on research, experience, purchase history, or other information and documents in files accordingly. Small purchases require that price or rate quotations be obtained and documented to support the procurement decisions. Formal procurement methods require documentation of sealed bids, proposals, or rationale for the use of non competitive procurements, such as single source and emergency procurements Condition During our testing, we identified two contracts that did not have adequate documentation to support the basis for the contract price. Questioned Costs $222,703 Identification of How Questioned Costs Were Computed The sum of the expenditures incurred under the contracts for the two exceptions identified in our testing was used to calculate questioned costs. Context Of the 33 procurements selected for testing, there were two contracts subject to formal procurement methods that had no evidence to support whether sealed bids, proposals, or noncompetitive procurements were used to support the contract price, one of which was a sole source contract. Cause and Effect The Authority experienced turnover in personnel that resulted in it being unable to locate documentation to support compliance for the two exceptions identified in our testing. Recommendation We recommend that internal controls be put in place to ensure that all procurements adhere to 2 CFR 200.320 and maintain documentation to support compliance and supervisory review. Views of Responsible Officials and Corrective Action Plan Effective 6/1/2025, TARTA implemented a new ERP system that will allow us to electronically control and verify all purchases in accordance with 2 CFR 200.32 standards for acceptable methods of procurement going forward.
Assistance Listing, Federal Agency, and Program Name 20.500, 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year All Pass through Entity Not applicable Finding Type Material weakness Repeat Finding No Criteria 2 CFR 200.305 requires that for reimbursement based grants, the entity should incur the costs for which reimbursement was requested prior to the date of the reimbursement request. Condition During our testing, we identified one reimbursement request that included a check that was not paid as it was voided and paid with a subsequent check, which was also requested for reimbursement. Questioned Costs $3,819 If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported Not applicable Identification of How Questioned Costs Were Computed The sum of the expenditures incurred under the contracts for the exception identified in our testing was used to calculate questioned costs. Context Of the 9 draws selected for testing, there was one draw that included one invoice submitted for reimbursement twice on the same draw as it was incorrectly entered into the system. Cause and Effect A check was voided and expense was never paid as the invoice was incorrectly coded to the incorrect vendor, but was still included as a check on the reimbursement request. Recommendation We recommend that the internal controls be put in place to ensure that there are no duplicate expenses being submitted for reimbursement. Views of Responsible Officials and Planned Corrective Actions Effective 6/1/2025, TARTA implemented a new ERP system that will allow us to electronically control, accumulated, and monitor all transaction related to our grant draws in accordance with 2 CFR 200.305 going forward.
Assistance Listing, Federal Agency, and Program Name 20.500, 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year All Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2023-006 Criteria The Authority should ensure there is a process in place prior to entering into contracts with vendors in excess of $25,000 to verify such contractors are not suspended, debarred, or otherwise excluded pursuant to 2 CFR Section 180.300. Condition There was no evidence to support that the Authority performed procedures to verify that the vendors were not suspended, debarred, or otherwise excluded prior to entering into contracts for 18 contracts within our testing population. Questioned Costs Not applicable Identification of How Questioned Costs Were Computed Not applicable Context Of the 33 procurements selected for testing, 18 procurements did not contain evidence of either (1) a search performed on Sam.gov to determine if the vendor was suspended, debarred, or otherwise excluded; (2) a certification from the contractor attesting that they are not suspended, debarred, or otherwise excluded; or (3) adding a clause or condition to the covered transaction with that vendor. Cause and Effect The Authority has experienced turnover that resulted in it being unable to locate documentation to support compliance. Recommendation We recommend that internal controls be put in place to ensure that the required verification is performed, documented, and reviewed by a supervisor prior to entering into contracts with vendors. Views of Responsible Officials and Planned Corrective Actions Effective 6/1/2025, TARTA implemented a new ERP system that will allow us to indicate and upload verification that a vendor was checked for suspension, debarment, or exclusions prior to entering into a contract in accordance with 2 CFR 180.300, going forward.