Audit 44441

FY End
2022-06-30
Total Expended
$8.13M
Findings
36
Programs
3
Year: 2022 Accepted: 2023-01-04

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
43668 2022-005 Material Weakness - P
43669 2022-006 Significant Deficiency - C
43670 2022-005 Material Weakness - P
43671 2022-006 Significant Deficiency - C
43672 2022-005 Material Weakness - P
43673 2022-006 Significant Deficiency - C
43674 2022-005 Material Weakness - P
43675 2022-006 Significant Deficiency - C
43676 2022-005 Material Weakness - P
43677 2022-006 Significant Deficiency - C
43678 2022-005 Material Weakness - P
43679 2022-006 Significant Deficiency - C
43680 2022-005 Material Weakness - P
43681 2022-006 Significant Deficiency - C
43682 2022-005 Material Weakness - P
43683 2022-006 Significant Deficiency - C
43684 2022-005 Material Weakness - P
43685 2022-006 Significant Deficiency - C
620110 2022-005 Material Weakness - P
620111 2022-006 Significant Deficiency - C
620112 2022-005 Material Weakness - P
620113 2022-006 Significant Deficiency - C
620114 2022-005 Material Weakness - P
620115 2022-006 Significant Deficiency - C
620116 2022-005 Material Weakness - P
620117 2022-006 Significant Deficiency - C
620118 2022-005 Material Weakness - P
620119 2022-006 Significant Deficiency - C
620120 2022-005 Material Weakness - P
620121 2022-006 Significant Deficiency - C
620122 2022-005 Material Weakness - P
620123 2022-006 Significant Deficiency - C
620124 2022-005 Material Weakness - P
620125 2022-006 Significant Deficiency - C
620126 2022-005 Material Weakness - P
620127 2022-006 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
20.507 Federal Transit_formula Grants $278,594 Yes 2
20.525 State of Good Repair Grants Program $106,181 Yes 2
20.205 Highway Planning and Construction $76,120 - 0

Contacts

Name Title Type
VJ3NAJ5P1DE3 Karen Foster Auditee
3132211247 Anil Sakhuja Auditor
No contacts on file

Notes to SEFA

Title: SUBSEQUENT EVENTS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Detroit Transportation Corporation (DTC). 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). In addition, expenditures reported on the schedule are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of DTC, it is not intended to and does not present the financial position, change in net position or cash flows of DTC. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. All subsequent events relative to the major programs were evaluated through December 09, 2022, the date the accompanying reports were available to be issued. No significant event was noted that required adjustment or disclosure to the accompanying reports.
Title: EXPENDITURE REPORT Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Detroit Transportation Corporation (DTC). 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). In addition, expenditures reported on the schedule are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of DTC, it is not intended to and does not present the financial position, change in net position or cash flows of DTC. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Management has reconciled the expenditures reported in the Schedule of Expenditures of Federal Awards to those amounts reported in the annual or final cost reports. These reconciliations resulted in unallowable differences and paybacks which have been adjusted in the financial statements. Federal Revenue as per Financial Statements $ 5,948,684 Paybacks and Refunds $2,180,608 Federal Expenditures per SEFA $ 8,129,292
Title: ELIGIBLE AND INELIGIBLE EXPENSES PER THE BPT R & E MANUAL AND NOTES Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Detroit Transportation Corporation (DTC). 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). In addition, expenditures reported on the schedule are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of DTC, it is not intended to and does not present the financial position, change in net position or cash flows of DTC. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The States BPT requires DTC to include supplemental schedules to the financial statements. These Supplemental schedules are included on pages 22-34 of this report. These schedules include eligible expenses to be reimbursed with state funds that have been appropriate for mass transit operating assistance under ACT 51. The schedules also detail ineligible expenses that cannot be reimbursed. The supplemental schedules detail any Section 5307 (capital funding) and any other grant funding used to pay operating expenses and either subtracts them out as ineligible or does not include them in the total expense to be reimbursed.? No Office of Passenger Transportation (OPT) approved cost allocation plans are required and therefore none were used in the preparation of the financial statements.? All expenses associated with auxiliary transportation revenue, which contains advertising revenue, are subtracted out as ineligible.? The depreciation expenses on assets purchased with state or federal grant funds are shown as ineligible expenses. The ineligible depreciation amount of $1,937,421 on assets purchased with state and federal funds has been reported in PTMS (Public Transportation Management System). Depreciation expense of $160,441 of assets purchased with local funds is reported as an eligible expense.? The only retirement benefit offered by DTC is a defined benefit plan. Pension costs incurred were calculated pursuant to GASB 68 rules. The total pension expense recognized as calculated is $614,027 and was expensed entirely on the books. DTC contributed $900,000 during the year and therefore $285,973 is subtracted out as negative ineligible pension. DTC did not incur, nor pay, any OPEB.? All expenses associated with Other Federal Transit Contracts and Reimbursements and Other MDOT Contracts and Reimbursements revenue have been subtracted as ineligible.? All expenses associated with the Detroit Department of Transportation (DDOT) and Q-line contracts for security at the various facilities and buses have been subtracted as ineligible.? The portion of ineligible association dues are reported as ineligible lobbying expense.? All expenses associated with miscellaneous revenues are subtracted out as ineligible.
Title: NON FINANCIAL DATA Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Detroit Transportation Corporation (DTC). 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). In addition, expenditures reported on the schedule are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of DTC, it is not intended to and does not present the financial position, change in net position or cash flows of DTC. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The methodology used for compiling miles and nonfinancial information used to allocate costs has been reviewed and the recording method has been found to be adequate and reliable.
Title: CONTINGENCIES Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Detroit Transportation Corporation (DTC). 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). In addition, expenditures reported on the schedule are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of DTC, it is not intended to and does not present the financial position, change in net position or cash flows of DTC. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Amounts received or receivable under grant programs are subject to audit and adjustment by grantor agencies, principally the federal and state governments. Any disallowed claims, including amounts already collected, may constitute a liability of DTC. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although DTC expects such amounts, if any to be immaterial.

Finding Details

Program Name ? ALL CFDA Number ? N/A Finding Type ? Material Weakness Criteria ? 2CFR Part 200 requires an auditee to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Condition ? During our audit, we noted that DTC did not have a system in place to correctly identify and record the federal expenditures. We noted certain matters that collectively constituted a material weakness in reporting the federal expenditures. The items noted are as follows: ? Due to lack of coordination between the grants department and the fiscal department, FTA drawdowns were not performed on a timely basis. Timing differences were noted in reporting the expenses in the financial statements and the federal drawdowns. It was further noted that a reconciliation of the grant-related expenses with the general ledger was not performed on a timely basis. ? The grants department performed a grants reconciliation which resulted in paybacks and drawdowns of federal funds under various projects. Questioned Costs ? None Cause/Effect ? The SEFA was not accurately stated as a result of not identifying certain federal award expenditures. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? Although an improvement was noted in the grants reconciliation process from the previous years, we recommend that DTC?s internal controls should be adequately designed to ensure that the general ledger and the grant records are reconciled and discrepancies if any are brought to attention in a timely manner. Additionally, DTC should strive to implement controls over the preparation of the SEFA to ensure that amounts are properly recorded on SEFA. View of Responsible Official and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will perform periodic reconciliations throughout the fiscal year between grants records and the general ledger. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? ALL CFDA Number ? N/A Finding Type ? Material Weakness Criteria ? 2CFR Part 200 requires an auditee to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Condition ? During our audit, we noted that DTC did not have a system in place to correctly identify and record the federal expenditures. We noted certain matters that collectively constituted a material weakness in reporting the federal expenditures. The items noted are as follows: ? Due to lack of coordination between the grants department and the fiscal department, FTA drawdowns were not performed on a timely basis. Timing differences were noted in reporting the expenses in the financial statements and the federal drawdowns. It was further noted that a reconciliation of the grant-related expenses with the general ledger was not performed on a timely basis. ? The grants department performed a grants reconciliation which resulted in paybacks and drawdowns of federal funds under various projects. Questioned Costs ? None Cause/Effect ? The SEFA was not accurately stated as a result of not identifying certain federal award expenditures. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? Although an improvement was noted in the grants reconciliation process from the previous years, we recommend that DTC?s internal controls should be adequately designed to ensure that the general ledger and the grant records are reconciled and discrepancies if any are brought to attention in a timely manner. Additionally, DTC should strive to implement controls over the preparation of the SEFA to ensure that amounts are properly recorded on SEFA. View of Responsible Official and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will perform periodic reconciliations throughout the fiscal year between grants records and the general ledger. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? ALL CFDA Number ? N/A Finding Type ? Material Weakness Criteria ? 2CFR Part 200 requires an auditee to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Condition ? During our audit, we noted that DTC did not have a system in place to correctly identify and record the federal expenditures. We noted certain matters that collectively constituted a material weakness in reporting the federal expenditures. The items noted are as follows: ? Due to lack of coordination between the grants department and the fiscal department, FTA drawdowns were not performed on a timely basis. Timing differences were noted in reporting the expenses in the financial statements and the federal drawdowns. It was further noted that a reconciliation of the grant-related expenses with the general ledger was not performed on a timely basis. ? The grants department performed a grants reconciliation which resulted in paybacks and drawdowns of federal funds under various projects. Questioned Costs ? None Cause/Effect ? The SEFA was not accurately stated as a result of not identifying certain federal award expenditures. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? Although an improvement was noted in the grants reconciliation process from the previous years, we recommend that DTC?s internal controls should be adequately designed to ensure that the general ledger and the grant records are reconciled and discrepancies if any are brought to attention in a timely manner. Additionally, DTC should strive to implement controls over the preparation of the SEFA to ensure that amounts are properly recorded on SEFA. View of Responsible Official and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will perform periodic reconciliations throughout the fiscal year between grants records and the general ledger. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? ALL CFDA Number ? N/A Finding Type ? Material Weakness Criteria ? 2CFR Part 200 requires an auditee to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Condition ? During our audit, we noted that DTC did not have a system in place to correctly identify and record the federal expenditures. We noted certain matters that collectively constituted a material weakness in reporting the federal expenditures. The items noted are as follows: ? Due to lack of coordination between the grants department and the fiscal department, FTA drawdowns were not performed on a timely basis. Timing differences were noted in reporting the expenses in the financial statements and the federal drawdowns. It was further noted that a reconciliation of the grant-related expenses with the general ledger was not performed on a timely basis. ? The grants department performed a grants reconciliation which resulted in paybacks and drawdowns of federal funds under various projects. Questioned Costs ? None Cause/Effect ? The SEFA was not accurately stated as a result of not identifying certain federal award expenditures. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? Although an improvement was noted in the grants reconciliation process from the previous years, we recommend that DTC?s internal controls should be adequately designed to ensure that the general ledger and the grant records are reconciled and discrepancies if any are brought to attention in a timely manner. Additionally, DTC should strive to implement controls over the preparation of the SEFA to ensure that amounts are properly recorded on SEFA. View of Responsible Official and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will perform periodic reconciliations throughout the fiscal year between grants records and the general ledger. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? ALL CFDA Number ? N/A Finding Type ? Material Weakness Criteria ? 2CFR Part 200 requires an auditee to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Condition ? During our audit, we noted that DTC did not have a system in place to correctly identify and record the federal expenditures. We noted certain matters that collectively constituted a material weakness in reporting the federal expenditures. The items noted are as follows: ? Due to lack of coordination between the grants department and the fiscal department, FTA drawdowns were not performed on a timely basis. Timing differences were noted in reporting the expenses in the financial statements and the federal drawdowns. It was further noted that a reconciliation of the grant-related expenses with the general ledger was not performed on a timely basis. ? The grants department performed a grants reconciliation which resulted in paybacks and drawdowns of federal funds under various projects. Questioned Costs ? None Cause/Effect ? The SEFA was not accurately stated as a result of not identifying certain federal award expenditures. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? Although an improvement was noted in the grants reconciliation process from the previous years, we recommend that DTC?s internal controls should be adequately designed to ensure that the general ledger and the grant records are reconciled and discrepancies if any are brought to attention in a timely manner. Additionally, DTC should strive to implement controls over the preparation of the SEFA to ensure that amounts are properly recorded on SEFA. View of Responsible Official and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will perform periodic reconciliations throughout the fiscal year between grants records and the general ledger. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? ALL CFDA Number ? N/A Finding Type ? Material Weakness Criteria ? 2CFR Part 200 requires an auditee to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Condition ? During our audit, we noted that DTC did not have a system in place to correctly identify and record the federal expenditures. We noted certain matters that collectively constituted a material weakness in reporting the federal expenditures. The items noted are as follows: ? Due to lack of coordination between the grants department and the fiscal department, FTA drawdowns were not performed on a timely basis. Timing differences were noted in reporting the expenses in the financial statements and the federal drawdowns. It was further noted that a reconciliation of the grant-related expenses with the general ledger was not performed on a timely basis. ? The grants department performed a grants reconciliation which resulted in paybacks and drawdowns of federal funds under various projects. Questioned Costs ? None Cause/Effect ? The SEFA was not accurately stated as a result of not identifying certain federal award expenditures. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? Although an improvement was noted in the grants reconciliation process from the previous years, we recommend that DTC?s internal controls should be adequately designed to ensure that the general ledger and the grant records are reconciled and discrepancies if any are brought to attention in a timely manner. Additionally, DTC should strive to implement controls over the preparation of the SEFA to ensure that amounts are properly recorded on SEFA. View of Responsible Official and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will perform periodic reconciliations throughout the fiscal year between grants records and the general ledger. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? ALL CFDA Number ? N/A Finding Type ? Material Weakness Criteria ? 2CFR Part 200 requires an auditee to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Condition ? During our audit, we noted that DTC did not have a system in place to correctly identify and record the federal expenditures. We noted certain matters that collectively constituted a material weakness in reporting the federal expenditures. The items noted are as follows: ? Due to lack of coordination between the grants department and the fiscal department, FTA drawdowns were not performed on a timely basis. Timing differences were noted in reporting the expenses in the financial statements and the federal drawdowns. It was further noted that a reconciliation of the grant-related expenses with the general ledger was not performed on a timely basis. ? The grants department performed a grants reconciliation which resulted in paybacks and drawdowns of federal funds under various projects. Questioned Costs ? None Cause/Effect ? The SEFA was not accurately stated as a result of not identifying certain federal award expenditures. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? Although an improvement was noted in the grants reconciliation process from the previous years, we recommend that DTC?s internal controls should be adequately designed to ensure that the general ledger and the grant records are reconciled and discrepancies if any are brought to attention in a timely manner. Additionally, DTC should strive to implement controls over the preparation of the SEFA to ensure that amounts are properly recorded on SEFA. View of Responsible Official and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will perform periodic reconciliations throughout the fiscal year between grants records and the general ledger. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? ALL CFDA Number ? N/A Finding Type ? Material Weakness Criteria ? 2CFR Part 200 requires an auditee to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Condition ? During our audit, we noted that DTC did not have a system in place to correctly identify and record the federal expenditures. We noted certain matters that collectively constituted a material weakness in reporting the federal expenditures. The items noted are as follows: ? Due to lack of coordination between the grants department and the fiscal department, FTA drawdowns were not performed on a timely basis. Timing differences were noted in reporting the expenses in the financial statements and the federal drawdowns. It was further noted that a reconciliation of the grant-related expenses with the general ledger was not performed on a timely basis. ? The grants department performed a grants reconciliation which resulted in paybacks and drawdowns of federal funds under various projects. Questioned Costs ? None Cause/Effect ? The SEFA was not accurately stated as a result of not identifying certain federal award expenditures. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? Although an improvement was noted in the grants reconciliation process from the previous years, we recommend that DTC?s internal controls should be adequately designed to ensure that the general ledger and the grant records are reconciled and discrepancies if any are brought to attention in a timely manner. Additionally, DTC should strive to implement controls over the preparation of the SEFA to ensure that amounts are properly recorded on SEFA. View of Responsible Official and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will perform periodic reconciliations throughout the fiscal year between grants records and the general ledger. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? ALL CFDA Number ? N/A Finding Type ? Material Weakness Criteria ? 2CFR Part 200 requires an auditee to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Condition ? During our audit, we noted that DTC did not have a system in place to correctly identify and record the federal expenditures. We noted certain matters that collectively constituted a material weakness in reporting the federal expenditures. The items noted are as follows: ? Due to lack of coordination between the grants department and the fiscal department, FTA drawdowns were not performed on a timely basis. Timing differences were noted in reporting the expenses in the financial statements and the federal drawdowns. It was further noted that a reconciliation of the grant-related expenses with the general ledger was not performed on a timely basis. ? The grants department performed a grants reconciliation which resulted in paybacks and drawdowns of federal funds under various projects. Questioned Costs ? None Cause/Effect ? The SEFA was not accurately stated as a result of not identifying certain federal award expenditures. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? Although an improvement was noted in the grants reconciliation process from the previous years, we recommend that DTC?s internal controls should be adequately designed to ensure that the general ledger and the grant records are reconciled and discrepancies if any are brought to attention in a timely manner. Additionally, DTC should strive to implement controls over the preparation of the SEFA to ensure that amounts are properly recorded on SEFA. View of Responsible Official and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will perform periodic reconciliations throughout the fiscal year between grants records and the general ledger. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? ALL CFDA Number ? N/A Finding Type ? Material Weakness Criteria ? 2CFR Part 200 requires an auditee to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Condition ? During our audit, we noted that DTC did not have a system in place to correctly identify and record the federal expenditures. We noted certain matters that collectively constituted a material weakness in reporting the federal expenditures. The items noted are as follows: ? Due to lack of coordination between the grants department and the fiscal department, FTA drawdowns were not performed on a timely basis. Timing differences were noted in reporting the expenses in the financial statements and the federal drawdowns. It was further noted that a reconciliation of the grant-related expenses with the general ledger was not performed on a timely basis. ? The grants department performed a grants reconciliation which resulted in paybacks and drawdowns of federal funds under various projects. Questioned Costs ? None Cause/Effect ? The SEFA was not accurately stated as a result of not identifying certain federal award expenditures. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? Although an improvement was noted in the grants reconciliation process from the previous years, we recommend that DTC?s internal controls should be adequately designed to ensure that the general ledger and the grant records are reconciled and discrepancies if any are brought to attention in a timely manner. Additionally, DTC should strive to implement controls over the preparation of the SEFA to ensure that amounts are properly recorded on SEFA. View of Responsible Official and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will perform periodic reconciliations throughout the fiscal year between grants records and the general ledger. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? ALL CFDA Number ? N/A Finding Type ? Material Weakness Criteria ? 2CFR Part 200 requires an auditee to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Condition ? During our audit, we noted that DTC did not have a system in place to correctly identify and record the federal expenditures. We noted certain matters that collectively constituted a material weakness in reporting the federal expenditures. The items noted are as follows: ? Due to lack of coordination between the grants department and the fiscal department, FTA drawdowns were not performed on a timely basis. Timing differences were noted in reporting the expenses in the financial statements and the federal drawdowns. It was further noted that a reconciliation of the grant-related expenses with the general ledger was not performed on a timely basis. ? The grants department performed a grants reconciliation which resulted in paybacks and drawdowns of federal funds under various projects. Questioned Costs ? None Cause/Effect ? The SEFA was not accurately stated as a result of not identifying certain federal award expenditures. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? Although an improvement was noted in the grants reconciliation process from the previous years, we recommend that DTC?s internal controls should be adequately designed to ensure that the general ledger and the grant records are reconciled and discrepancies if any are brought to attention in a timely manner. Additionally, DTC should strive to implement controls over the preparation of the SEFA to ensure that amounts are properly recorded on SEFA. View of Responsible Official and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will perform periodic reconciliations throughout the fiscal year between grants records and the general ledger. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? ALL CFDA Number ? N/A Finding Type ? Material Weakness Criteria ? 2CFR Part 200 requires an auditee to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Condition ? During our audit, we noted that DTC did not have a system in place to correctly identify and record the federal expenditures. We noted certain matters that collectively constituted a material weakness in reporting the federal expenditures. The items noted are as follows: ? Due to lack of coordination between the grants department and the fiscal department, FTA drawdowns were not performed on a timely basis. Timing differences were noted in reporting the expenses in the financial statements and the federal drawdowns. It was further noted that a reconciliation of the grant-related expenses with the general ledger was not performed on a timely basis. ? The grants department performed a grants reconciliation which resulted in paybacks and drawdowns of federal funds under various projects. Questioned Costs ? None Cause/Effect ? The SEFA was not accurately stated as a result of not identifying certain federal award expenditures. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? Although an improvement was noted in the grants reconciliation process from the previous years, we recommend that DTC?s internal controls should be adequately designed to ensure that the general ledger and the grant records are reconciled and discrepancies if any are brought to attention in a timely manner. Additionally, DTC should strive to implement controls over the preparation of the SEFA to ensure that amounts are properly recorded on SEFA. View of Responsible Official and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will perform periodic reconciliations throughout the fiscal year between grants records and the general ledger. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? ALL CFDA Number ? N/A Finding Type ? Material Weakness Criteria ? 2CFR Part 200 requires an auditee to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Condition ? During our audit, we noted that DTC did not have a system in place to correctly identify and record the federal expenditures. We noted certain matters that collectively constituted a material weakness in reporting the federal expenditures. The items noted are as follows: ? Due to lack of coordination between the grants department and the fiscal department, FTA drawdowns were not performed on a timely basis. Timing differences were noted in reporting the expenses in the financial statements and the federal drawdowns. It was further noted that a reconciliation of the grant-related expenses with the general ledger was not performed on a timely basis. ? The grants department performed a grants reconciliation which resulted in paybacks and drawdowns of federal funds under various projects. Questioned Costs ? None Cause/Effect ? The SEFA was not accurately stated as a result of not identifying certain federal award expenditures. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? Although an improvement was noted in the grants reconciliation process from the previous years, we recommend that DTC?s internal controls should be adequately designed to ensure that the general ledger and the grant records are reconciled and discrepancies if any are brought to attention in a timely manner. Additionally, DTC should strive to implement controls over the preparation of the SEFA to ensure that amounts are properly recorded on SEFA. View of Responsible Official and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will perform periodic reconciliations throughout the fiscal year between grants records and the general ledger. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? ALL CFDA Number ? N/A Finding Type ? Material Weakness Criteria ? 2CFR Part 200 requires an auditee to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Condition ? During our audit, we noted that DTC did not have a system in place to correctly identify and record the federal expenditures. We noted certain matters that collectively constituted a material weakness in reporting the federal expenditures. The items noted are as follows: ? Due to lack of coordination between the grants department and the fiscal department, FTA drawdowns were not performed on a timely basis. Timing differences were noted in reporting the expenses in the financial statements and the federal drawdowns. It was further noted that a reconciliation of the grant-related expenses with the general ledger was not performed on a timely basis. ? The grants department performed a grants reconciliation which resulted in paybacks and drawdowns of federal funds under various projects. Questioned Costs ? None Cause/Effect ? The SEFA was not accurately stated as a result of not identifying certain federal award expenditures. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? Although an improvement was noted in the grants reconciliation process from the previous years, we recommend that DTC?s internal controls should be adequately designed to ensure that the general ledger and the grant records are reconciled and discrepancies if any are brought to attention in a timely manner. Additionally, DTC should strive to implement controls over the preparation of the SEFA to ensure that amounts are properly recorded on SEFA. View of Responsible Official and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will perform periodic reconciliations throughout the fiscal year between grants records and the general ledger. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? ALL CFDA Number ? N/A Finding Type ? Material Weakness Criteria ? 2CFR Part 200 requires an auditee to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Condition ? During our audit, we noted that DTC did not have a system in place to correctly identify and record the federal expenditures. We noted certain matters that collectively constituted a material weakness in reporting the federal expenditures. The items noted are as follows: ? Due to lack of coordination between the grants department and the fiscal department, FTA drawdowns were not performed on a timely basis. Timing differences were noted in reporting the expenses in the financial statements and the federal drawdowns. It was further noted that a reconciliation of the grant-related expenses with the general ledger was not performed on a timely basis. ? The grants department performed a grants reconciliation which resulted in paybacks and drawdowns of federal funds under various projects. Questioned Costs ? None Cause/Effect ? The SEFA was not accurately stated as a result of not identifying certain federal award expenditures. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? Although an improvement was noted in the grants reconciliation process from the previous years, we recommend that DTC?s internal controls should be adequately designed to ensure that the general ledger and the grant records are reconciled and discrepancies if any are brought to attention in a timely manner. Additionally, DTC should strive to implement controls over the preparation of the SEFA to ensure that amounts are properly recorded on SEFA. View of Responsible Official and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will perform periodic reconciliations throughout the fiscal year between grants records and the general ledger. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? ALL CFDA Number ? N/A Finding Type ? Material Weakness Criteria ? 2CFR Part 200 requires an auditee to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Condition ? During our audit, we noted that DTC did not have a system in place to correctly identify and record the federal expenditures. We noted certain matters that collectively constituted a material weakness in reporting the federal expenditures. The items noted are as follows: ? Due to lack of coordination between the grants department and the fiscal department, FTA drawdowns were not performed on a timely basis. Timing differences were noted in reporting the expenses in the financial statements and the federal drawdowns. It was further noted that a reconciliation of the grant-related expenses with the general ledger was not performed on a timely basis. ? The grants department performed a grants reconciliation which resulted in paybacks and drawdowns of federal funds under various projects. Questioned Costs ? None Cause/Effect ? The SEFA was not accurately stated as a result of not identifying certain federal award expenditures. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? Although an improvement was noted in the grants reconciliation process from the previous years, we recommend that DTC?s internal controls should be adequately designed to ensure that the general ledger and the grant records are reconciled and discrepancies if any are brought to attention in a timely manner. Additionally, DTC should strive to implement controls over the preparation of the SEFA to ensure that amounts are properly recorded on SEFA. View of Responsible Official and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will perform periodic reconciliations throughout the fiscal year between grants records and the general ledger. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? ALL CFDA Number ? N/A Finding Type ? Material Weakness Criteria ? 2CFR Part 200 requires an auditee to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Condition ? During our audit, we noted that DTC did not have a system in place to correctly identify and record the federal expenditures. We noted certain matters that collectively constituted a material weakness in reporting the federal expenditures. The items noted are as follows: ? Due to lack of coordination between the grants department and the fiscal department, FTA drawdowns were not performed on a timely basis. Timing differences were noted in reporting the expenses in the financial statements and the federal drawdowns. It was further noted that a reconciliation of the grant-related expenses with the general ledger was not performed on a timely basis. ? The grants department performed a grants reconciliation which resulted in paybacks and drawdowns of federal funds under various projects. Questioned Costs ? None Cause/Effect ? The SEFA was not accurately stated as a result of not identifying certain federal award expenditures. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? Although an improvement was noted in the grants reconciliation process from the previous years, we recommend that DTC?s internal controls should be adequately designed to ensure that the general ledger and the grant records are reconciled and discrepancies if any are brought to attention in a timely manner. Additionally, DTC should strive to implement controls over the preparation of the SEFA to ensure that amounts are properly recorded on SEFA. View of Responsible Official and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will perform periodic reconciliations throughout the fiscal year between grants records and the general ledger. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.
Program Name ? ALL CFDA Number ? N/A Finding Type ? Material Weakness Criteria ? 2CFR Part 200 requires an auditee to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Condition ? During our audit, we noted that DTC did not have a system in place to correctly identify and record the federal expenditures. We noted certain matters that collectively constituted a material weakness in reporting the federal expenditures. The items noted are as follows: ? Due to lack of coordination between the grants department and the fiscal department, FTA drawdowns were not performed on a timely basis. Timing differences were noted in reporting the expenses in the financial statements and the federal drawdowns. It was further noted that a reconciliation of the grant-related expenses with the general ledger was not performed on a timely basis. ? The grants department performed a grants reconciliation which resulted in paybacks and drawdowns of federal funds under various projects. Questioned Costs ? None Cause/Effect ? The SEFA was not accurately stated as a result of not identifying certain federal award expenditures. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? Although an improvement was noted in the grants reconciliation process from the previous years, we recommend that DTC?s internal controls should be adequately designed to ensure that the general ledger and the grant records are reconciled and discrepancies if any are brought to attention in a timely manner. Additionally, DTC should strive to implement controls over the preparation of the SEFA to ensure that amounts are properly recorded on SEFA. View of Responsible Official and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will perform periodic reconciliations throughout the fiscal year between grants records and the general ledger. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained.
Program Name ? Federal Transit Formula Grant and State of Good Repair Grant CFDA Number ? 20.507 and 20.525 Finding Type ? Significant Deficiency and Non-Compliance Criteria ? In accordance with 2CFR section 200.305(b) of the OMB compliance supplement, non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition ? For 1 out of 10 samples selected for testing, the disbursements of the funds were not made within a reasonable timeframe. Questioned Costs ? Unknown Cause/Effect ? DTC is not in compliance with the cash management requirement. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? DTC should implement controls to adhere to the compliance requirements for cash management. View of Responsible Officials and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.