FAC Explorer

Audit 41679

FY End
2022-09-30
Total Expended
$1.47M
Findings
4
Programs
3
Organization: Mid-Atlantic Regional Air Management Association, Inc. (MD)
Year: 2022 Accepted: 2023-09-05
Auditor: Albright Crumbacker Moul & Itell

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
47159 2022-002 - - L
47160 2022-001 Significant Deficiency - L
623601 2022-002 - - L
623602 2022-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $740,076 - 0
66.040 State Clean Diesel Grant Program $5,923 Yes 0
66.039 National Clean Diesel Emissions Reduction Program $1,000 Yes 0

Contacts

Name Title Type
RKZRAZ3KAQS3 Marc Cone Auditee
4433220319 R. Kert Shipway, CPA Auditor
No contacts on file

Notes to SEFA

Title: SCOPE OF AUDIT PURSUANT TO UNIFORM GUIDANCE Accounting Policies: Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Mid-Atlantic Regional Air Management Association, Inc. and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Uniform Guidance. Therefore, some amounts in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.Accrued and Deferred Reimbursement: Various reimbursement procedures are used for federal awards received by the Mid-Atlantic Regional Air Management Association, Inc. Consequently, timing differences between expenditures and program reimbursements can exist at the beginning and end of the fiscal year. Accrued balances at year-end represent an excess of reimbursable expenditures over cash receipts to date. Deferred balances at year-end represent an excess of cash receipts over reimbursable expenditures to date. Generally, accrued or deferred balances caused by differences in the timing of cash receipts and expenditures will be reversed in the subsequent fiscal year. De Minimis Rate Used: N Rate Explanation: The Mid-Atlantic Regional Air Management Association, Inc. has elected not to use the 10% de minimis indirect cost rate as outlined in the Uniform Guidance. The single audit is the performance of a uniform audit of all the Mid-Atlantic Regional Air Management Association, Inc. federal grants in conjunction with the annual audit of the basic financial statements. The adoption of such a procedure was formalized by the U.S. Office of Management and Budget (OMB) in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The single audit fulfills all the Federal agencies audit requirements which include financial, compliance and the adequacy of internal control. All federal award programs operated by the Mid-Atlantic Regional Air Management Association, Inc. are included in the scope of the Uniform Guidance audit.
Title: FISCAL PERIOD AUDITED Accounting Policies: Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Mid-Atlantic Regional Air Management Association, Inc. and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Uniform Guidance. Therefore, some amounts in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.Accrued and Deferred Reimbursement: Various reimbursement procedures are used for federal awards received by the Mid-Atlantic Regional Air Management Association, Inc. Consequently, timing differences between expenditures and program reimbursements can exist at the beginning and end of the fiscal year. Accrued balances at year-end represent an excess of reimbursable expenditures over cash receipts to date. Deferred balances at year-end represent an excess of cash receipts over reimbursable expenditures to date. Generally, accrued or deferred balances caused by differences in the timing of cash receipts and expenditures will be reversed in the subsequent fiscal year. De Minimis Rate Used: N Rate Explanation: The Mid-Atlantic Regional Air Management Association, Inc. has elected not to use the 10% de minimis indirect cost rate as outlined in the Uniform Guidance. Single audit testing procedures were performed for transactions occurring during the fiscal year ended September 30, 2022.
Title: NON-CASH ASSISTANCE Accounting Policies: Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Mid-Atlantic Regional Air Management Association, Inc. and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Uniform Guidance. Therefore, some amounts in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.Accrued and Deferred Reimbursement: Various reimbursement procedures are used for federal awards received by the Mid-Atlantic Regional Air Management Association, Inc. Consequently, timing differences between expenditures and program reimbursements can exist at the beginning and end of the fiscal year. Accrued balances at year-end represent an excess of reimbursable expenditures over cash receipts to date. Deferred balances at year-end represent an excess of cash receipts over reimbursable expenditures to date. Generally, accrued or deferred balances caused by differences in the timing of cash receipts and expenditures will be reversed in the subsequent fiscal year. De Minimis Rate Used: N Rate Explanation: The Mid-Atlantic Regional Air Management Association, Inc. has elected not to use the 10% de minimis indirect cost rate as outlined in the Uniform Guidance. The Mid-Atlantic Regional Air Management Association, Inc. received $633,134 of non-cash assistance from technology deployment agreements, which required the beneficiary to match a portion of the total expenditure as a condition of the agreement. Such non-cash assistance is required as a part of the Mid-Atlantic Regional Air Management Association, Inc. grant agreements identified as award numbers DE-96344401, DE-96370001 and DE-96378201 in the Schedule of Expenditures Federal Awards.
Title: FEDERAL LOAN PROGRAMS Accounting Policies: Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Mid-Atlantic Regional Air Management Association, Inc. and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Uniform Guidance. Therefore, some amounts in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.Accrued and Deferred Reimbursement: Various reimbursement procedures are used for federal awards received by the Mid-Atlantic Regional Air Management Association, Inc. Consequently, timing differences between expenditures and program reimbursements can exist at the beginning and end of the fiscal year. Accrued balances at year-end represent an excess of reimbursable expenditures over cash receipts to date. Deferred balances at year-end represent an excess of cash receipts over reimbursable expenditures to date. Generally, accrued or deferred balances caused by differences in the timing of cash receipts and expenditures will be reversed in the subsequent fiscal year. De Minimis Rate Used: N Rate Explanation: The Mid-Atlantic Regional Air Management Association, Inc. has elected not to use the 10% de minimis indirect cost rate as outlined in the Uniform Guidance. The Mid-Atlantic Regional Air Management Association, Inc. did not receive or administer any federal loan programs during the fiscal year ended September 30, 2022.
Title: INSURANCE Accounting Policies: Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Mid-Atlantic Regional Air Management Association, Inc. and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Uniform Guidance. Therefore, some amounts in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.Accrued and Deferred Reimbursement: Various reimbursement procedures are used for federal awards received by the Mid-Atlantic Regional Air Management Association, Inc. Consequently, timing differences between expenditures and program reimbursements can exist at the beginning and end of the fiscal year. Accrued balances at year-end represent an excess of reimbursable expenditures over cash receipts to date. Deferred balances at year-end represent an excess of cash receipts over reimbursable expenditures to date. Generally, accrued or deferred balances caused by differences in the timing of cash receipts and expenditures will be reversed in the subsequent fiscal year. De Minimis Rate Used: N Rate Explanation: The Mid-Atlantic Regional Air Management Association, Inc. has elected not to use the 10% de minimis indirect cost rate as outlined in the Uniform Guidance. The Mid-Atlantic Regional Air Management Association, Inc. maintains property and liability insurance which management believes is sufficient to meet its needs. Substantially all of the insurance coverage is either directly or indirectly funded by federal awards.

Finding Details

Finding 2022-002
Finding 2022-002 Noncompliance with the Uniform Guidance Compliance Requirement Reporting Federal Programs: Assistance Listing No. Name of Federal Program or Cluster 66.039 National Clean Diesel Funding Assistance Program Criteria: FFATA requires subawards in excess of $30,000 to be reported to FSRS no later than the end of the month following the month the subaward was made. Condition: MARAMA made two subawards exceeding $30,000 during fiscal year 2022 and did not report either subaward to FSRS. Context: Noncompliance was noted as a result of substantive tests of compliance whereby report submissions to FSRS are viewed. Transactions Tested Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements 2 2 0 n/a n/a Dollar Amount of Tested Transactions Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements $82,842 $82,842 $0 n/a n/a Cause: Reports to FSRS were not submitted because the determination of which subawards were subject to FFATA reporting was misinterpreted as the payment of federal award funds to subawardees rather than the execution of the subaward. Effect or Potential Effect: MARAMA is not in compliance with the FFATA reporting requirements. Questioned costs: Known and likely questioned costs did not exceed $25,000 and, therefore, were not required to be reported. Recommendation: MARAMA should develop procedures to ensure subawards are reported to FSRS by the reporting deadline. Subaward relationships should be re-evaluated as the agreements expire to ensure that the continued classification of the agreements as subawards is appropriate. Responsible Official?s Response: Now that MARAMA has been made aware of these requirements as it relates to EFC and DBLS, reporting will be made to FFATA. In the future, MARAMA will identify subaward relationships more accurately to determine reporting requirements when engaging with future business partnerships.
Finding 2022-001
Finding 2022-001 Significant Deficiency in Internal Control over Compliance ? Reporting Criteria: An entity?s internal control structure should include such controls to ensure timely, accurate, and complete reporting. Federal grant recipients are subject to special reporting requirements, including: - Special reports required by the Federal Funding Accountability and Transparency Act (FFATA) which requires subawards in excess of $30,000 to be reported to FSRS no later than the end of the month following the month the subaward was made. - Annual financial reporting includes: o Reports to negotiate the final indirect cost rate proposal based on actual expenditures should be submitted within six months of fiscal year end. o The OMB reporting package containing the data collection form and audit report(s) are required to be submitted to the Federal Clearinghouse the earlier of 30 days after receipt of the auditor?s report(s) or 9 months after the end of the fiscal year. Condition: Reports required by FFATA for sub-awards made in fiscal year 2022 were not completed. Annual financial reports for indirect costs and the OMB reporting package have not yet been submitted. Context: The condition was noted as part of our documentation of internal control processes and substantive testing of compliance with the compliance requirement reporting. Cause: Reports to FSRS were not submitted because the determination of which subawards were subject to FFATA reporting was misinterpreted as the payment of federal award funds to subawardees rather than the execution of the subaward. Report submissions for the annual financial reports for indirect costs and the OMB reporting package were delayed due to the unavailability of a fully adjusted accrual basis trial balance and general ledger. Effect or Potential Effect: MARAMA may not be in compliance with its reporting requirements. Delays in submission of reports could cause delays in the assignment or approval of final and provisional indirect cost rates. Noncompliance with reporting requirements could impact current and future federal awards. Recommendation: MARAMA should develop procedures to ensure subawards are reported to FSRS by the reporting deadline. Accounting records should be finalized more expeditiously in order to allow for timely filing of all annual financial reports. Responsible Official?s Response: MARAMA appreciates the auditor pointing out this issue so that future confusion is avoided. As noted above, the subaward determination may have been misinterpreted due to MARAMA?s understanding of identifying sub awardees. The identifying of the relationship between MARAMA and organizations that we work with will be reviewed so that proper reporting can be accomplished. In addition, due to exceptional demands on the existing financial accounting provider MARAMA was unable to provide timely information to the auditor to meet their schedule constraints. Regardless, MARAMA is transitioning to another financial accounting service provider and will work in developing the necessary steps to provide the auditor with timely information.
Finding 2022-002
Finding 2022-002 Noncompliance with the Uniform Guidance Compliance Requirement Reporting Federal Programs: Assistance Listing No. Name of Federal Program or Cluster 66.039 National Clean Diesel Funding Assistance Program Criteria: FFATA requires subawards in excess of $30,000 to be reported to FSRS no later than the end of the month following the month the subaward was made. Condition: MARAMA made two subawards exceeding $30,000 during fiscal year 2022 and did not report either subaward to FSRS. Context: Noncompliance was noted as a result of substantive tests of compliance whereby report submissions to FSRS are viewed. Transactions Tested Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements 2 2 0 n/a n/a Dollar Amount of Tested Transactions Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements $82,842 $82,842 $0 n/a n/a Cause: Reports to FSRS were not submitted because the determination of which subawards were subject to FFATA reporting was misinterpreted as the payment of federal award funds to subawardees rather than the execution of the subaward. Effect or Potential Effect: MARAMA is not in compliance with the FFATA reporting requirements. Questioned costs: Known and likely questioned costs did not exceed $25,000 and, therefore, were not required to be reported. Recommendation: MARAMA should develop procedures to ensure subawards are reported to FSRS by the reporting deadline. Subaward relationships should be re-evaluated as the agreements expire to ensure that the continued classification of the agreements as subawards is appropriate. Responsible Official?s Response: Now that MARAMA has been made aware of these requirements as it relates to EFC and DBLS, reporting will be made to FFATA. In the future, MARAMA will identify subaward relationships more accurately to determine reporting requirements when engaging with future business partnerships.
Finding 2022-001
Finding 2022-001 Significant Deficiency in Internal Control over Compliance ? Reporting Criteria: An entity?s internal control structure should include such controls to ensure timely, accurate, and complete reporting. Federal grant recipients are subject to special reporting requirements, including: - Special reports required by the Federal Funding Accountability and Transparency Act (FFATA) which requires subawards in excess of $30,000 to be reported to FSRS no later than the end of the month following the month the subaward was made. - Annual financial reporting includes: o Reports to negotiate the final indirect cost rate proposal based on actual expenditures should be submitted within six months of fiscal year end. o The OMB reporting package containing the data collection form and audit report(s) are required to be submitted to the Federal Clearinghouse the earlier of 30 days after receipt of the auditor?s report(s) or 9 months after the end of the fiscal year. Condition: Reports required by FFATA for sub-awards made in fiscal year 2022 were not completed. Annual financial reports for indirect costs and the OMB reporting package have not yet been submitted. Context: The condition was noted as part of our documentation of internal control processes and substantive testing of compliance with the compliance requirement reporting. Cause: Reports to FSRS were not submitted because the determination of which subawards were subject to FFATA reporting was misinterpreted as the payment of federal award funds to subawardees rather than the execution of the subaward. Report submissions for the annual financial reports for indirect costs and the OMB reporting package were delayed due to the unavailability of a fully adjusted accrual basis trial balance and general ledger. Effect or Potential Effect: MARAMA may not be in compliance with its reporting requirements. Delays in submission of reports could cause delays in the assignment or approval of final and provisional indirect cost rates. Noncompliance with reporting requirements could impact current and future federal awards. Recommendation: MARAMA should develop procedures to ensure subawards are reported to FSRS by the reporting deadline. Accounting records should be finalized more expeditiously in order to allow for timely filing of all annual financial reports. Responsible Official?s Response: MARAMA appreciates the auditor pointing out this issue so that future confusion is avoided. As noted above, the subaward determination may have been misinterpreted due to MARAMA?s understanding of identifying sub awardees. The identifying of the relationship between MARAMA and organizations that we work with will be reviewed so that proper reporting can be accomplished. In addition, due to exceptional demands on the existing financial accounting provider MARAMA was unable to provide timely information to the auditor to meet their schedule constraints. Regardless, MARAMA is transitioning to another financial accounting service provider and will work in developing the necessary steps to provide the auditor with timely information.