FAC Explorer

Audit 49229

FY End
2022-06-30
Total Expended
$44.59M
Findings
2
Programs
7
Organization: Suburban Mobility Authority for Regional Transportation (MI)
Year: 2022 Accepted: 2023-02-15
Auditor: Plante & Moran PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
51398 2022-001 Material Weakness - A
627840 2022-001 Material Weakness - A

Programs

ALN Program Spent Major Findings
20.507 Covid-19 - Federal Transit_formula Grants $8.51M Yes 0
20.507 Federal Transit_formula Grants $2.28M Yes 0
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $315,753 - 0
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $194,231 - 0
20.509 Covid-19 - Formula Grants for Rural Areas and Tribal Transit Program $108,197 - 0
20.516 Job Access and Reverse Commute Program $52,366 - 0
20.509 Formula Grants for Rural Areas and Tribal Transit Program $-17,798 - 0

Contacts

Name Title Type
C2BVL7YAWEF2 Ryan Byrne Auditee
3132232149 Pamela Hill Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of the Suburban Mobility Authority for Regional Transportation (the "Authority") under programs of the federal government for the year ended June 30, 2022. The information in the 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 (the "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. Expenditures reported in the Schedule are reported on the full accrual of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The pass through entity identifying numbers are presented where available. The Authority has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
Reference Number 2022-001 Assistance Listing Number, Federal Agency, and Program Name - COVID 19 20.507, Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - MI-2020-052 Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - 2 CFR 200.403 requires recipients of federal funds to expend them on allowable costs. Condition - The Authority disbursed a portion of its CARES Act funds to community partners; however, many of those partners offer only Section 5310 service for seniors and individuals with disabilities. Section 5310 program expenses are not allowable under the CARES Act. Questioned Costs - $1,146,291 Identification of How Questioned Costs Were Computed - Questioned costs represent the total amount of CARES Act funds passed through to community partners. Context - During the fiscal year, the Authority passed through $1,146,291 to 35 community partners. Cause and Effect - The CARES Act award was new to the Authority in fiscal year 2020. The Authority's other federal awards have existed for many years and the Authority is very familiar with their requirements and allowable uses. The Authority sought to share the new award with its community partners but was not aware that most of them did not have expenditures allowable under the CARES Act until the matter was identified during the Authority's most recent triennial review. Recommendation - When new awards are received, we recommend the Authority thoroughly analyze the compliance requirements, including the allowable uses. Views of Responsible Officials and Corrective Action Plan - Authority management is aware of the issue and has been diligently working with our FTA regional office to correct the issue. While certain community partner expenses were not eligible under the CARES Act, they are certainly eligible under CRRSA and ARPA funding grants. We are in the process of finalizing a plan with the FTA where all community partner relief funding will be reprogramed under the CRRSA and ARPA grants. This correction plan, once finalized, will result in no reduction of federal relief funding to SMART or any of our community partners. Given extraordinary circumstances and expedited nature of the CARES Act funding, we do not believe that this issue will be a significant risk for future grant funding; however, the Authority has modified our grant policy manual to ensure a more thorough review of eligible expenses for subrecipients.
Finding 2022-001
Reference Number 2022-001 Assistance Listing Number, Federal Agency, and Program Name - COVID 19 20.507, Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - MI-2020-052 Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - 2 CFR 200.403 requires recipients of federal funds to expend them on allowable costs. Condition - The Authority disbursed a portion of its CARES Act funds to community partners; however, many of those partners offer only Section 5310 service for seniors and individuals with disabilities. Section 5310 program expenses are not allowable under the CARES Act. Questioned Costs - $1,146,291 Identification of How Questioned Costs Were Computed - Questioned costs represent the total amount of CARES Act funds passed through to community partners. Context - During the fiscal year, the Authority passed through $1,146,291 to 35 community partners. Cause and Effect - The CARES Act award was new to the Authority in fiscal year 2020. The Authority's other federal awards have existed for many years and the Authority is very familiar with their requirements and allowable uses. The Authority sought to share the new award with its community partners but was not aware that most of them did not have expenditures allowable under the CARES Act until the matter was identified during the Authority's most recent triennial review. Recommendation - When new awards are received, we recommend the Authority thoroughly analyze the compliance requirements, including the allowable uses. Views of Responsible Officials and Corrective Action Plan - Authority management is aware of the issue and has been diligently working with our FTA regional office to correct the issue. While certain community partner expenses were not eligible under the CARES Act, they are certainly eligible under CRRSA and ARPA funding grants. We are in the process of finalizing a plan with the FTA where all community partner relief funding will be reprogramed under the CRRSA and ARPA grants. This correction plan, once finalized, will result in no reduction of federal relief funding to SMART or any of our community partners. Given extraordinary circumstances and expedited nature of the CARES Act funding, we do not believe that this issue will be a significant risk for future grant funding; however, the Authority has modified our grant policy manual to ensure a more thorough review of eligible expenses for subrecipients.