Material Weakness Segregation of duties. Criteria An effective system of internal accounting control necessitates an adequate segregation of duties so that no one individual handles a transaction from its inception to its completion. Condition One position within the finance group had access to the blank checks, the ability to process invoices, and the responsibility for reviewing the vendor statements. Cause Due to the size of the finance group, we found some critical duties are combined and assigned to the available employees. Effect The internal control system is more susceptible to errors and other irregularities, either intentional or unintentional, not being discovered. Recommendation Management should continue to review staff responsibilities and analyze where segregation of duties can be established and maintained. A final cross check of the invoice, purchase order, and check requisition should be done by someone that does not have access to any of the processes involved in generating the source documents. Management's Response and Corrective Action See attached response.
Material Weakness Management override of controls. Criteria An effective system of internal accounting control necessitates the ability to detect and prevent management override of the control environment. Condition The former general manager was able to circumvent the Authority's procurement process and enter into contacts without proper approval. Subsequent to June 30, 2022, the Authority expended $26,850 related to the project that did not go through the proper procurement procedures. Cause Due to the size of the finance group, we found some controls were not being effectively maintained to detect and prevent management override of the control environment. Effect The internal control system is more susceptible to errors and other irregularities, either intentional or unintentional, not being discovered. Recommendation Management should follow all procurement procedures as outlined in the Authority's policy documents. A final cross check of proper approvals should be done by someone that does not have access to any of the processes involved in generating the source documents. Management's Response and Corrective Action See attached response.
The requirements in Section 200.512 of the Uniform Guidance Act state that the audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report, or nine months after the end of the audit period. Criteria A transit agency entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal Awards must have a single audit conducted in accordance with Section 200.514 of the Uniform Guidance Act. Condition The Authority was not able to complete the June 30, 2021 audit in time to submit by the required deadline. Cause The Authority's personnel were unable to provide the assistance needed to complete the financial statement audit in a timely fashion. Effect The Authority's financial statements were not submitted timely to the Federal Audit Clearinghouse. Recommendation The Authority should review job descriptions and personnel levels to ensure the Authority's staff is able to comply with the Uniform Guidance Act requirements. Management's Response and Corrective Action See attached response.
Material Weakness Segregation of duties. Criteria An effective system of internal accounting control necessitates an adequate segregation of duties so that no one individual handles a transaction from its inception to its completion. Condition One position within the finance group had access to the blank checks, the ability to process invoices, and the responsibility for reviewing the vendor statements. Cause Due to the size of the finance group, we found some critical duties are combined and assigned to the available employees. Effect The internal control system is more susceptible to errors and other irregularities, either intentional or unintentional, not being discovered. Recommendation Management should continue to review staff responsibilities and analyze where segregation of duties can be established and maintained. A final cross check of the invoice, purchase order, and check requisition should be done by someone that does not have access to any of the processes involved in generating the source documents. Management's Response and Corrective Action See attached response.
Material Weakness Management override of controls. Criteria An effective system of internal accounting control necessitates the ability to detect and prevent management override of the control environment. Condition The former general manager was able to circumvent the Authority's procurement process and enter into contacts without proper approval. Subsequent to June 30, 2022, the Authority expended $26,850 related to the project that did not go through the proper procurement procedures. Cause Due to the size of the finance group, we found some controls were not being effectively maintained to detect and prevent management override of the control environment. Effect The internal control system is more susceptible to errors and other irregularities, either intentional or unintentional, not being discovered. Recommendation Management should follow all procurement procedures as outlined in the Authority's policy documents. A final cross check of proper approvals should be done by someone that does not have access to any of the processes involved in generating the source documents. Management's Response and Corrective Action See attached response.
The requirements in Section 200.512 of the Uniform Guidance Act state that the audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report, or nine months after the end of the audit period. Criteria A transit agency entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal Awards must have a single audit conducted in accordance with Section 200.514 of the Uniform Guidance Act. Condition The Authority was not able to complete the June 30, 2021 audit in time to submit by the required deadline. Cause The Authority's personnel were unable to provide the assistance needed to complete the financial statement audit in a timely fashion. Effect The Authority's financial statements were not submitted timely to the Federal Audit Clearinghouse. Recommendation The Authority should review job descriptions and personnel levels to ensure the Authority's staff is able to comply with the Uniform Guidance Act requirements. Management's Response and Corrective Action See attached response.
Material Weakness Segregation of duties. Criteria An effective system of internal accounting control necessitates an adequate segregation of duties so that no one individual handles a transaction from its inception to its completion. Condition One position within the finance group had access to the blank checks, the ability to process invoices, and the responsibility for reviewing the vendor statements. Cause Due to the size of the finance group, we found some critical duties are combined and assigned to the available employees. Effect The internal control system is more susceptible to errors and other irregularities, either intentional or unintentional, not being discovered. Recommendation Management should continue to review staff responsibilities and analyze where segregation of duties can be established and maintained. A final cross check of the invoice, purchase order, and check requisition should be done by someone that does not have access to any of the processes involved in generating the source documents. Management's Response and Corrective Action See attached response.
Material Weakness Management override of controls. Criteria An effective system of internal accounting control necessitates the ability to detect and prevent management override of the control environment. Condition The former general manager was able to circumvent the Authority's procurement process and enter into contacts without proper approval. Subsequent to June 30, 2022, the Authority expended $26,850 related to the project that did not go through the proper procurement procedures. Cause Due to the size of the finance group, we found some controls were not being effectively maintained to detect and prevent management override of the control environment. Effect The internal control system is more susceptible to errors and other irregularities, either intentional or unintentional, not being discovered. Recommendation Management should follow all procurement procedures as outlined in the Authority's policy documents. A final cross check of proper approvals should be done by someone that does not have access to any of the processes involved in generating the source documents. Management's Response and Corrective Action See attached response.
The requirements in Section 200.512 of the Uniform Guidance Act state that the audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report, or nine months after the end of the audit period. Criteria A transit agency entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal Awards must have a single audit conducted in accordance with Section 200.514 of the Uniform Guidance Act. Condition The Authority was not able to complete the June 30, 2021 audit in time to submit by the required deadline. Cause The Authority's personnel were unable to provide the assistance needed to complete the financial statement audit in a timely fashion. Effect The Authority's financial statements were not submitted timely to the Federal Audit Clearinghouse. Recommendation The Authority should review job descriptions and personnel levels to ensure the Authority's staff is able to comply with the Uniform Guidance Act requirements. Management's Response and Corrective Action See attached response.
The Authority did not file quarterly Medical Assistance reports timely. Criteria Quarterly Statement of Expenditures for the Medical Assistance Program are due 30 days after the end of the quarter. Condition The Authority filed one of the Quarterly Statement of Expenditures for the Medical Assistance Program after the specified due date. The report that was due on October 30, 2021 was filed on November 2, 2021. Cause The Authority's personnel were not able to prepare reports in a timely fashion prior to the due date. Effect Consistent late reporting could result in the Authority losing grant funding. Recommendation The Authority should prepare the Quarterly Statement of Expenditures for the Medical Assistance Program prior to the due date in order to ensure timely reporting. Management's Response and Corrective Action See attached response.
Material Weakness Segregation of duties. Criteria An effective system of internal accounting control necessitates an adequate segregation of duties so that no one individual handles a transaction from its inception to its completion. Condition One position within the finance group had access to the blank checks, the ability to process invoices, and the responsibility for reviewing the vendor statements. Cause Due to the size of the finance group, we found some critical duties are combined and assigned to the available employees. Effect The internal control system is more susceptible to errors and other irregularities, either intentional or unintentional, not being discovered. Recommendation Management should continue to review staff responsibilities and analyze where segregation of duties can be established and maintained. A final cross check of the invoice, purchase order, and check requisition should be done by someone that does not have access to any of the processes involved in generating the source documents. Management's Response and Corrective Action See attached response.
Material Weakness Management override of controls. Criteria An effective system of internal accounting control necessitates the ability to detect and prevent management override of the control environment. Condition The former general manager was able to circumvent the Authority's procurement process and enter into contacts without proper approval. Subsequent to June 30, 2022, the Authority expended $26,850 related to the project that did not go through the proper procurement procedures. Cause Due to the size of the finance group, we found some controls were not being effectively maintained to detect and prevent management override of the control environment. Effect The internal control system is more susceptible to errors and other irregularities, either intentional or unintentional, not being discovered. Recommendation Management should follow all procurement procedures as outlined in the Authority's policy documents. A final cross check of proper approvals should be done by someone that does not have access to any of the processes involved in generating the source documents. Management's Response and Corrective Action See attached response.
The requirements in Section 200.512 of the Uniform Guidance Act state that the audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report, or nine months after the end of the audit period. Criteria A transit agency entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal Awards must have a single audit conducted in accordance with Section 200.514 of the Uniform Guidance Act. Condition The Authority was not able to complete the June 30, 2021 audit in time to submit by the required deadline. Cause The Authority's personnel were unable to provide the assistance needed to complete the financial statement audit in a timely fashion. Effect The Authority's financial statements were not submitted timely to the Federal Audit Clearinghouse. Recommendation The Authority should review job descriptions and personnel levels to ensure the Authority's staff is able to comply with the Uniform Guidance Act requirements. Management's Response and Corrective Action See attached response.
Material Weakness Segregation of duties. Criteria An effective system of internal accounting control necessitates an adequate segregation of duties so that no one individual handles a transaction from its inception to its completion. Condition One position within the finance group had access to the blank checks, the ability to process invoices, and the responsibility for reviewing the vendor statements. Cause Due to the size of the finance group, we found some critical duties are combined and assigned to the available employees. Effect The internal control system is more susceptible to errors and other irregularities, either intentional or unintentional, not being discovered. Recommendation Management should continue to review staff responsibilities and analyze where segregation of duties can be established and maintained. A final cross check of the invoice, purchase order, and check requisition should be done by someone that does not have access to any of the processes involved in generating the source documents. Management's Response and Corrective Action See attached response.
Material Weakness Management override of controls. Criteria An effective system of internal accounting control necessitates the ability to detect and prevent management override of the control environment. Condition The former general manager was able to circumvent the Authority's procurement process and enter into contacts without proper approval. Subsequent to June 30, 2022, the Authority expended $26,850 related to the project that did not go through the proper procurement procedures. Cause Due to the size of the finance group, we found some controls were not being effectively maintained to detect and prevent management override of the control environment. Effect The internal control system is more susceptible to errors and other irregularities, either intentional or unintentional, not being discovered. Recommendation Management should follow all procurement procedures as outlined in the Authority's policy documents. A final cross check of proper approvals should be done by someone that does not have access to any of the processes involved in generating the source documents. Management's Response and Corrective Action See attached response.
The requirements in Section 200.512 of the Uniform Guidance Act state that the audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report, or nine months after the end of the audit period. Criteria A transit agency entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal Awards must have a single audit conducted in accordance with Section 200.514 of the Uniform Guidance Act. Condition The Authority was not able to complete the June 30, 2021 audit in time to submit by the required deadline. Cause The Authority's personnel were unable to provide the assistance needed to complete the financial statement audit in a timely fashion. Effect The Authority's financial statements were not submitted timely to the Federal Audit Clearinghouse. Recommendation The Authority should review job descriptions and personnel levels to ensure the Authority's staff is able to comply with the Uniform Guidance Act requirements. Management's Response and Corrective Action See attached response.
Material Weakness Segregation of duties. Criteria An effective system of internal accounting control necessitates an adequate segregation of duties so that no one individual handles a transaction from its inception to its completion. Condition One position within the finance group had access to the blank checks, the ability to process invoices, and the responsibility for reviewing the vendor statements. Cause Due to the size of the finance group, we found some critical duties are combined and assigned to the available employees. Effect The internal control system is more susceptible to errors and other irregularities, either intentional or unintentional, not being discovered. Recommendation Management should continue to review staff responsibilities and analyze where segregation of duties can be established and maintained. A final cross check of the invoice, purchase order, and check requisition should be done by someone that does not have access to any of the processes involved in generating the source documents. Management's Response and Corrective Action See attached response.
Material Weakness Management override of controls. Criteria An effective system of internal accounting control necessitates the ability to detect and prevent management override of the control environment. Condition The former general manager was able to circumvent the Authority's procurement process and enter into contacts without proper approval. Subsequent to June 30, 2022, the Authority expended $26,850 related to the project that did not go through the proper procurement procedures. Cause Due to the size of the finance group, we found some controls were not being effectively maintained to detect and prevent management override of the control environment. Effect The internal control system is more susceptible to errors and other irregularities, either intentional or unintentional, not being discovered. Recommendation Management should follow all procurement procedures as outlined in the Authority's policy documents. A final cross check of proper approvals should be done by someone that does not have access to any of the processes involved in generating the source documents. Management's Response and Corrective Action See attached response.
The requirements in Section 200.512 of the Uniform Guidance Act state that the audit must be completed, and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report, or nine months after the end of the audit period. Criteria A transit agency entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal Awards must have a single audit conducted in accordance with Section 200.514 of the Uniform Guidance Act. Condition The Authority was not able to complete the June 30, 2021 audit in time to submit by the required deadline. Cause The Authority's personnel were unable to provide the assistance needed to complete the financial statement audit in a timely fashion. Effect The Authority's financial statements were not submitted timely to the Federal Audit Clearinghouse. Recommendation The Authority should review job descriptions and personnel levels to ensure the Authority's staff is able to comply with the Uniform Guidance Act requirements. Management's Response and Corrective Action See attached response.
The Authority did not file quarterly Medical Assistance reports timely. Criteria Quarterly Statement of Expenditures for the Medical Assistance Program are due 30 days after the end of the quarter. Condition The Authority filed one of the Quarterly Statement of Expenditures for the Medical Assistance Program after the specified due date. The report that was due on October 30, 2021 was filed on November 2, 2021. Cause The Authority's personnel were not able to prepare reports in a timely fashion prior to the due date. Effect Consistent late reporting could result in the Authority losing grant funding. Recommendation The Authority should prepare the Quarterly Statement of Expenditures for the Medical Assistance Program prior to the due date in order to ensure timely reporting. Management's Response and Corrective Action See attached response.