Audit 42353

FY End
2022-09-30
Total Expended
$823,826
Findings
28
Programs
2
Organization: Delta Area Transit Authority (MI)
Year: 2022 Accepted: 2023-04-25

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
49842 2022-003 Material Weakness Yes AB
49843 2022-004 - Yes P
49844 2022-003 Material Weakness Yes AB
49845 2022-004 - Yes P
49846 2022-003 Material Weakness Yes AB
49847 2022-004 - Yes P
49848 2022-003 Material Weakness Yes AB
49849 2022-004 - Yes P
49850 2022-003 Material Weakness Yes AB
49851 2022-004 - Yes P
49852 2022-003 Material Weakness Yes AB
49853 2022-004 - Yes P
49854 2022-003 Material Weakness Yes AB
49855 2022-004 - Yes P
626284 2022-003 Material Weakness Yes AB
626285 2022-004 - Yes P
626286 2022-003 Material Weakness Yes AB
626287 2022-004 - Yes P
626288 2022-003 Material Weakness Yes AB
626289 2022-004 - Yes P
626290 2022-003 Material Weakness Yes AB
626291 2022-004 - Yes P
626292 2022-003 Material Weakness Yes AB
626293 2022-004 - Yes P
626294 2022-003 Material Weakness Yes AB
626295 2022-004 - Yes P
626296 2022-003 Material Weakness Yes AB
626297 2022-004 - Yes P

Programs

Contacts

Name Title Type
CSAFF48FSSA3 Cherie Gagnon Auditee
9067861187 Joe Verlin 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, which is described in Note 1 to the Authoritys financial statements. Such 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. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the Authority has not elected to use the10% de minimis cost rate as permitted by ?200.414 of the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Delta Area Transit Authority (the Authority) under programs of the federal government for the year ended September 30, 2022. 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 Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.The Authoritys reporting entity is defined in Note 1 of the Authoritys Audited Financial Statements.
Title: NOTE 3 - RECONCILIATION TO THE FINANCIAL STATEMENTS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the Authoritys financial statements. Such 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. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the Authority has not elected to use the10% de minimis cost rate as permitted by ?200.414 of the Uniform Guidance. Note 3 on page 46 of the .pdf reconciles the amounts presented in the Schedule to the amounts presented in the Authoritys financial statements.

Finding Details

Finding Type: Material weakness, internal controls over federal award. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: Costs must meet certain general criteria to be allowable under federal awards. One criterion is that the costs be adequately documented. Condition/Finding: 9 of the 40 accounts payable expenses that were selected for testing included documentation showing that an individual with knowledge of the transaction reviewed the invoice to: verify that it was necessary and reasonable for the performance of the federal award, verify that it was accurate in amount, authorize the voucher for payment, or establish the appropriate general ledger code for posting. Further, none of the 45 payroll expenses that were selected for testing included employee timecards reviewed and authorized for payment by their immediate supervisor. Cause: The Authority?s internal control policies currently do not require documented review and authorization of accounts payable vouchers or employee timecards. Effect: As a result of this condition, the Authority does not have adequate documentation demonstrating that an individual with appropriate knowledge of the transaction has reviewed that the transaction is allowable, free of error, and necessary and reasonable for the performance of the federal award. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority update its policies and procedures to provide documented proof of review and authorization by management of all expenses. These policies and procedures should be updated to conform with the Uniform Guidance as soon as practical. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Immaterial noncompliance. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to the preparation of the schedule of federal awards and the allowability of costs charged to federal programs (?200.300 - 328). Condition/Finding: Although the Authority has processes in place to cover these areas, the Authority lacks formal written policies covering all these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the Authority did not fully comply with the Uniform Guidance applicable to the above noted grant. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year September 30, 2023. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Material weakness, internal controls over federal award. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: Costs must meet certain general criteria to be allowable under federal awards. One criterion is that the costs be adequately documented. Condition/Finding: 9 of the 40 accounts payable expenses that were selected for testing included documentation showing that an individual with knowledge of the transaction reviewed the invoice to: verify that it was necessary and reasonable for the performance of the federal award, verify that it was accurate in amount, authorize the voucher for payment, or establish the appropriate general ledger code for posting. Further, none of the 45 payroll expenses that were selected for testing included employee timecards reviewed and authorized for payment by their immediate supervisor. Cause: The Authority?s internal control policies currently do not require documented review and authorization of accounts payable vouchers or employee timecards. Effect: As a result of this condition, the Authority does not have adequate documentation demonstrating that an individual with appropriate knowledge of the transaction has reviewed that the transaction is allowable, free of error, and necessary and reasonable for the performance of the federal award. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority update its policies and procedures to provide documented proof of review and authorization by management of all expenses. These policies and procedures should be updated to conform with the Uniform Guidance as soon as practical. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Immaterial noncompliance. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to the preparation of the schedule of federal awards and the allowability of costs charged to federal programs (?200.300 - 328). Condition/Finding: Although the Authority has processes in place to cover these areas, the Authority lacks formal written policies covering all these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the Authority did not fully comply with the Uniform Guidance applicable to the above noted grant. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year September 30, 2023. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Material weakness, internal controls over federal award. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: Costs must meet certain general criteria to be allowable under federal awards. One criterion is that the costs be adequately documented. Condition/Finding: 9 of the 40 accounts payable expenses that were selected for testing included documentation showing that an individual with knowledge of the transaction reviewed the invoice to: verify that it was necessary and reasonable for the performance of the federal award, verify that it was accurate in amount, authorize the voucher for payment, or establish the appropriate general ledger code for posting. Further, none of the 45 payroll expenses that were selected for testing included employee timecards reviewed and authorized for payment by their immediate supervisor. Cause: The Authority?s internal control policies currently do not require documented review and authorization of accounts payable vouchers or employee timecards. Effect: As a result of this condition, the Authority does not have adequate documentation demonstrating that an individual with appropriate knowledge of the transaction has reviewed that the transaction is allowable, free of error, and necessary and reasonable for the performance of the federal award. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority update its policies and procedures to provide documented proof of review and authorization by management of all expenses. These policies and procedures should be updated to conform with the Uniform Guidance as soon as practical. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Immaterial noncompliance. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to the preparation of the schedule of federal awards and the allowability of costs charged to federal programs (?200.300 - 328). Condition/Finding: Although the Authority has processes in place to cover these areas, the Authority lacks formal written policies covering all these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the Authority did not fully comply with the Uniform Guidance applicable to the above noted grant. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year September 30, 2023. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Material weakness, internal controls over federal award. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: Costs must meet certain general criteria to be allowable under federal awards. One criterion is that the costs be adequately documented. Condition/Finding: 9 of the 40 accounts payable expenses that were selected for testing included documentation showing that an individual with knowledge of the transaction reviewed the invoice to: verify that it was necessary and reasonable for the performance of the federal award, verify that it was accurate in amount, authorize the voucher for payment, or establish the appropriate general ledger code for posting. Further, none of the 45 payroll expenses that were selected for testing included employee timecards reviewed and authorized for payment by their immediate supervisor. Cause: The Authority?s internal control policies currently do not require documented review and authorization of accounts payable vouchers or employee timecards. Effect: As a result of this condition, the Authority does not have adequate documentation demonstrating that an individual with appropriate knowledge of the transaction has reviewed that the transaction is allowable, free of error, and necessary and reasonable for the performance of the federal award. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority update its policies and procedures to provide documented proof of review and authorization by management of all expenses. These policies and procedures should be updated to conform with the Uniform Guidance as soon as practical. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Immaterial noncompliance. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to the preparation of the schedule of federal awards and the allowability of costs charged to federal programs (?200.300 - 328). Condition/Finding: Although the Authority has processes in place to cover these areas, the Authority lacks formal written policies covering all these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the Authority did not fully comply with the Uniform Guidance applicable to the above noted grant. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year September 30, 2023. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Material weakness, internal controls over federal award. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: Costs must meet certain general criteria to be allowable under federal awards. One criterion is that the costs be adequately documented. Condition/Finding: 9 of the 40 accounts payable expenses that were selected for testing included documentation showing that an individual with knowledge of the transaction reviewed the invoice to: verify that it was necessary and reasonable for the performance of the federal award, verify that it was accurate in amount, authorize the voucher for payment, or establish the appropriate general ledger code for posting. Further, none of the 45 payroll expenses that were selected for testing included employee timecards reviewed and authorized for payment by their immediate supervisor. Cause: The Authority?s internal control policies currently do not require documented review and authorization of accounts payable vouchers or employee timecards. Effect: As a result of this condition, the Authority does not have adequate documentation demonstrating that an individual with appropriate knowledge of the transaction has reviewed that the transaction is allowable, free of error, and necessary and reasonable for the performance of the federal award. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority update its policies and procedures to provide documented proof of review and authorization by management of all expenses. These policies and procedures should be updated to conform with the Uniform Guidance as soon as practical. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Immaterial noncompliance. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to the preparation of the schedule of federal awards and the allowability of costs charged to federal programs (?200.300 - 328). Condition/Finding: Although the Authority has processes in place to cover these areas, the Authority lacks formal written policies covering all these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the Authority did not fully comply with the Uniform Guidance applicable to the above noted grant. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year September 30, 2023. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Material weakness, internal controls over federal award. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: Costs must meet certain general criteria to be allowable under federal awards. One criterion is that the costs be adequately documented. Condition/Finding: 9 of the 40 accounts payable expenses that were selected for testing included documentation showing that an individual with knowledge of the transaction reviewed the invoice to: verify that it was necessary and reasonable for the performance of the federal award, verify that it was accurate in amount, authorize the voucher for payment, or establish the appropriate general ledger code for posting. Further, none of the 45 payroll expenses that were selected for testing included employee timecards reviewed and authorized for payment by their immediate supervisor. Cause: The Authority?s internal control policies currently do not require documented review and authorization of accounts payable vouchers or employee timecards. Effect: As a result of this condition, the Authority does not have adequate documentation demonstrating that an individual with appropriate knowledge of the transaction has reviewed that the transaction is allowable, free of error, and necessary and reasonable for the performance of the federal award. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority update its policies and procedures to provide documented proof of review and authorization by management of all expenses. These policies and procedures should be updated to conform with the Uniform Guidance as soon as practical. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Immaterial noncompliance. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to the preparation of the schedule of federal awards and the allowability of costs charged to federal programs (?200.300 - 328). Condition/Finding: Although the Authority has processes in place to cover these areas, the Authority lacks formal written policies covering all these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the Authority did not fully comply with the Uniform Guidance applicable to the above noted grant. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year September 30, 2023. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Material weakness, internal controls over federal award. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: Costs must meet certain general criteria to be allowable under federal awards. One criterion is that the costs be adequately documented. Condition/Finding: 9 of the 40 accounts payable expenses that were selected for testing included documentation showing that an individual with knowledge of the transaction reviewed the invoice to: verify that it was necessary and reasonable for the performance of the federal award, verify that it was accurate in amount, authorize the voucher for payment, or establish the appropriate general ledger code for posting. Further, none of the 45 payroll expenses that were selected for testing included employee timecards reviewed and authorized for payment by their immediate supervisor. Cause: The Authority?s internal control policies currently do not require documented review and authorization of accounts payable vouchers or employee timecards. Effect: As a result of this condition, the Authority does not have adequate documentation demonstrating that an individual with appropriate knowledge of the transaction has reviewed that the transaction is allowable, free of error, and necessary and reasonable for the performance of the federal award. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority update its policies and procedures to provide documented proof of review and authorization by management of all expenses. These policies and procedures should be updated to conform with the Uniform Guidance as soon as practical. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Immaterial noncompliance. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to the preparation of the schedule of federal awards and the allowability of costs charged to federal programs (?200.300 - 328). Condition/Finding: Although the Authority has processes in place to cover these areas, the Authority lacks formal written policies covering all these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the Authority did not fully comply with the Uniform Guidance applicable to the above noted grant. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year September 30, 2023. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Material weakness, internal controls over federal award. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: Costs must meet certain general criteria to be allowable under federal awards. One criterion is that the costs be adequately documented. Condition/Finding: 9 of the 40 accounts payable expenses that were selected for testing included documentation showing that an individual with knowledge of the transaction reviewed the invoice to: verify that it was necessary and reasonable for the performance of the federal award, verify that it was accurate in amount, authorize the voucher for payment, or establish the appropriate general ledger code for posting. Further, none of the 45 payroll expenses that were selected for testing included employee timecards reviewed and authorized for payment by their immediate supervisor. Cause: The Authority?s internal control policies currently do not require documented review and authorization of accounts payable vouchers or employee timecards. Effect: As a result of this condition, the Authority does not have adequate documentation demonstrating that an individual with appropriate knowledge of the transaction has reviewed that the transaction is allowable, free of error, and necessary and reasonable for the performance of the federal award. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority update its policies and procedures to provide documented proof of review and authorization by management of all expenses. These policies and procedures should be updated to conform with the Uniform Guidance as soon as practical. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Immaterial noncompliance. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to the preparation of the schedule of federal awards and the allowability of costs charged to federal programs (?200.300 - 328). Condition/Finding: Although the Authority has processes in place to cover these areas, the Authority lacks formal written policies covering all these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the Authority did not fully comply with the Uniform Guidance applicable to the above noted grant. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year September 30, 2023. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Material weakness, internal controls over federal award. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: Costs must meet certain general criteria to be allowable under federal awards. One criterion is that the costs be adequately documented. Condition/Finding: 9 of the 40 accounts payable expenses that were selected for testing included documentation showing that an individual with knowledge of the transaction reviewed the invoice to: verify that it was necessary and reasonable for the performance of the federal award, verify that it was accurate in amount, authorize the voucher for payment, or establish the appropriate general ledger code for posting. Further, none of the 45 payroll expenses that were selected for testing included employee timecards reviewed and authorized for payment by their immediate supervisor. Cause: The Authority?s internal control policies currently do not require documented review and authorization of accounts payable vouchers or employee timecards. Effect: As a result of this condition, the Authority does not have adequate documentation demonstrating that an individual with appropriate knowledge of the transaction has reviewed that the transaction is allowable, free of error, and necessary and reasonable for the performance of the federal award. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority update its policies and procedures to provide documented proof of review and authorization by management of all expenses. These policies and procedures should be updated to conform with the Uniform Guidance as soon as practical. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Immaterial noncompliance. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to the preparation of the schedule of federal awards and the allowability of costs charged to federal programs (?200.300 - 328). Condition/Finding: Although the Authority has processes in place to cover these areas, the Authority lacks formal written policies covering all these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the Authority did not fully comply with the Uniform Guidance applicable to the above noted grant. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year September 30, 2023. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Material weakness, internal controls over federal award. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: Costs must meet certain general criteria to be allowable under federal awards. One criterion is that the costs be adequately documented. Condition/Finding: 9 of the 40 accounts payable expenses that were selected for testing included documentation showing that an individual with knowledge of the transaction reviewed the invoice to: verify that it was necessary and reasonable for the performance of the federal award, verify that it was accurate in amount, authorize the voucher for payment, or establish the appropriate general ledger code for posting. Further, none of the 45 payroll expenses that were selected for testing included employee timecards reviewed and authorized for payment by their immediate supervisor. Cause: The Authority?s internal control policies currently do not require documented review and authorization of accounts payable vouchers or employee timecards. Effect: As a result of this condition, the Authority does not have adequate documentation demonstrating that an individual with appropriate knowledge of the transaction has reviewed that the transaction is allowable, free of error, and necessary and reasonable for the performance of the federal award. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority update its policies and procedures to provide documented proof of review and authorization by management of all expenses. These policies and procedures should be updated to conform with the Uniform Guidance as soon as practical. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Immaterial noncompliance. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to the preparation of the schedule of federal awards and the allowability of costs charged to federal programs (?200.300 - 328). Condition/Finding: Although the Authority has processes in place to cover these areas, the Authority lacks formal written policies covering all these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the Authority did not fully comply with the Uniform Guidance applicable to the above noted grant. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year September 30, 2023. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Material weakness, internal controls over federal award. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: Costs must meet certain general criteria to be allowable under federal awards. One criterion is that the costs be adequately documented. Condition/Finding: 9 of the 40 accounts payable expenses that were selected for testing included documentation showing that an individual with knowledge of the transaction reviewed the invoice to: verify that it was necessary and reasonable for the performance of the federal award, verify that it was accurate in amount, authorize the voucher for payment, or establish the appropriate general ledger code for posting. Further, none of the 45 payroll expenses that were selected for testing included employee timecards reviewed and authorized for payment by their immediate supervisor. Cause: The Authority?s internal control policies currently do not require documented review and authorization of accounts payable vouchers or employee timecards. Effect: As a result of this condition, the Authority does not have adequate documentation demonstrating that an individual with appropriate knowledge of the transaction has reviewed that the transaction is allowable, free of error, and necessary and reasonable for the performance of the federal award. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority update its policies and procedures to provide documented proof of review and authorization by management of all expenses. These policies and procedures should be updated to conform with the Uniform Guidance as soon as practical. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Immaterial noncompliance. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to the preparation of the schedule of federal awards and the allowability of costs charged to federal programs (?200.300 - 328). Condition/Finding: Although the Authority has processes in place to cover these areas, the Authority lacks formal written policies covering all these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the Authority did not fully comply with the Uniform Guidance applicable to the above noted grant. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year September 30, 2023. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Material weakness, internal controls over federal award. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: Costs must meet certain general criteria to be allowable under federal awards. One criterion is that the costs be adequately documented. Condition/Finding: 9 of the 40 accounts payable expenses that were selected for testing included documentation showing that an individual with knowledge of the transaction reviewed the invoice to: verify that it was necessary and reasonable for the performance of the federal award, verify that it was accurate in amount, authorize the voucher for payment, or establish the appropriate general ledger code for posting. Further, none of the 45 payroll expenses that were selected for testing included employee timecards reviewed and authorized for payment by their immediate supervisor. Cause: The Authority?s internal control policies currently do not require documented review and authorization of accounts payable vouchers or employee timecards. Effect: As a result of this condition, the Authority does not have adequate documentation demonstrating that an individual with appropriate knowledge of the transaction has reviewed that the transaction is allowable, free of error, and necessary and reasonable for the performance of the federal award. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority update its policies and procedures to provide documented proof of review and authorization by management of all expenses. These policies and procedures should be updated to conform with the Uniform Guidance as soon as practical. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Immaterial noncompliance. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to the preparation of the schedule of federal awards and the allowability of costs charged to federal programs (?200.300 - 328). Condition/Finding: Although the Authority has processes in place to cover these areas, the Authority lacks formal written policies covering all these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the Authority did not fully comply with the Uniform Guidance applicable to the above noted grant. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year September 30, 2023. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Material weakness, internal controls over federal award. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: Costs must meet certain general criteria to be allowable under federal awards. One criterion is that the costs be adequately documented. Condition/Finding: 9 of the 40 accounts payable expenses that were selected for testing included documentation showing that an individual with knowledge of the transaction reviewed the invoice to: verify that it was necessary and reasonable for the performance of the federal award, verify that it was accurate in amount, authorize the voucher for payment, or establish the appropriate general ledger code for posting. Further, none of the 45 payroll expenses that were selected for testing included employee timecards reviewed and authorized for payment by their immediate supervisor. Cause: The Authority?s internal control policies currently do not require documented review and authorization of accounts payable vouchers or employee timecards. Effect: As a result of this condition, the Authority does not have adequate documentation demonstrating that an individual with appropriate knowledge of the transaction has reviewed that the transaction is allowable, free of error, and necessary and reasonable for the performance of the federal award. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority update its policies and procedures to provide documented proof of review and authorization by management of all expenses. These policies and procedures should be updated to conform with the Uniform Guidance as soon as practical. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Immaterial noncompliance. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to the preparation of the schedule of federal awards and the allowability of costs charged to federal programs (?200.300 - 328). Condition/Finding: Although the Authority has processes in place to cover these areas, the Authority lacks formal written policies covering all these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the Authority did not fully comply with the Uniform Guidance applicable to the above noted grant. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year September 30, 2023. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Material weakness, internal controls over federal award. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: Costs must meet certain general criteria to be allowable under federal awards. One criterion is that the costs be adequately documented. Condition/Finding: 9 of the 40 accounts payable expenses that were selected for testing included documentation showing that an individual with knowledge of the transaction reviewed the invoice to: verify that it was necessary and reasonable for the performance of the federal award, verify that it was accurate in amount, authorize the voucher for payment, or establish the appropriate general ledger code for posting. Further, none of the 45 payroll expenses that were selected for testing included employee timecards reviewed and authorized for payment by their immediate supervisor. Cause: The Authority?s internal control policies currently do not require documented review and authorization of accounts payable vouchers or employee timecards. Effect: As a result of this condition, the Authority does not have adequate documentation demonstrating that an individual with appropriate knowledge of the transaction has reviewed that the transaction is allowable, free of error, and necessary and reasonable for the performance of the federal award. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority update its policies and procedures to provide documented proof of review and authorization by management of all expenses. These policies and procedures should be updated to conform with the Uniform Guidance as soon as practical. View of Responsible Officials (Corrective Action): See corrective action plan.
Finding Type: Immaterial noncompliance. Programs: Formula Grants for Rural Areas and Tribal Transit Program (Assistance Listing #20.509) Criteria: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to the preparation of the schedule of federal awards and the allowability of costs charged to federal programs (?200.300 - 328). Condition/Finding: Although the Authority has processes in place to cover these areas, the Authority lacks formal written policies covering all these areas. Cause: This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance. Effect: As a result of this condition, the Authority did not fully comply with the Uniform Guidance applicable to the above noted grant. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the Authority ensures these policies are updated to conform with the Uniform Guidance as soon as practical, but no later than the end of fiscal year September 30, 2023. View of Responsible Officials (Corrective Action): See corrective action plan.