FAC Explorer

Audit 8432

FY End
2023-06-30
Total Expended
$5.32M
Findings
24
Programs
3
Organization: Detroit Transportation Corporation (MI)
Year: 2023 Accepted: 2023-12-26
Auditor: Alan C Young & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6472 2023-002 Material Weakness Yes P
6473 2023-003 Significant Deficiency Yes C
6474 2023-002 Material Weakness Yes P
6475 2023-003 Significant Deficiency Yes C
6476 2023-002 Material Weakness Yes P
6477 2023-003 Significant Deficiency Yes C
6478 2023-002 Material Weakness Yes P
6479 2023-003 Significant Deficiency Yes C
6480 2023-002 Material Weakness Yes P
6481 2023-003 Significant Deficiency Yes C
6482 2023-002 Material Weakness Yes P
6483 2023-003 Significant Deficiency Yes C
582914 2023-002 Material Weakness Yes P
582915 2023-003 Significant Deficiency Yes C
582916 2023-002 Material Weakness Yes P
582917 2023-003 Significant Deficiency Yes C
582918 2023-002 Material Weakness Yes P
582919 2023-003 Significant Deficiency Yes C
582920 2023-002 Material Weakness Yes P
582921 2023-003 Significant Deficiency Yes C
582922 2023-002 Material Weakness Yes P
582923 2023-003 Significant Deficiency Yes C
582924 2023-002 Material Weakness Yes P
582925 2023-003 Significant Deficiency Yes C

Programs

ALN Program Spent Major Findings
20.507 Federal Transit_formula Grants $421,478 Yes 2
20.525 State of Good Repair Grants Program $358,208 Yes 2
20.205 Highway Planning and Construction $76,120 - 0

Contacts

Name Title Type
VJ3NAJ5P1DE3 Karen Foster Auditee
3132211247 Rajeev Shah Auditor
No contacts on file

Notes to SEFA

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. Unallowable differences, if any, have been disclosed to the auditor.
Title: ELIGIBLE AND INELIGIBLE EXPENSES PER THE BPT (Bureau of Passenger Transportation) R&E MANUAL AND NOTES TO BPT SCHEDULES 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 State’s 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 of $1,821,685 on assets purchased with state or federal grant funds are shown as ineligible expenses. • 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 recovery recognized as calculated is $(871,928) and the entire amount was recorded on the books as a credit to expenses. DTC contributed $900,000 during the year and therefore $1,771,928 is added back 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. • 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.
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 November 30, 2023, the date the accompanying reports were available to be issued. No significant event was noted that required adjustment or disclosure to the accompanying reports.

Finding Details

Finding 2023-002
Program Name – All Assistance Listing 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. Questioned Costs – None Cause/Effect – The SEFA was not accurately stated as a result of not identifying certain federal award expenditures.
Finding 2023-003
Program Name – Federal Transit Formula Grant and State of Good Repair Grant Assistance Listing 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 – During our audit we noted that the federal funds paybacks resulting from prior year grant reconciliations were not refunded in a timely manner. Questioned Costs – Unknown Cause/Effect – DTC is not in compliance with the cash management requirement.
Finding 2023-002
Program Name – All Assistance Listing 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. Questioned Costs – None Cause/Effect – The SEFA was not accurately stated as a result of not identifying certain federal award expenditures.
Finding 2023-003
Program Name – Federal Transit Formula Grant and State of Good Repair Grant Assistance Listing 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 – During our audit we noted that the federal funds paybacks resulting from prior year grant reconciliations were not refunded in a timely manner. Questioned Costs – Unknown Cause/Effect – DTC is not in compliance with the cash management requirement.
Finding 2023-002
Program Name – All Assistance Listing 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. Questioned Costs – None Cause/Effect – The SEFA was not accurately stated as a result of not identifying certain federal award expenditures.
Finding 2023-003
Program Name – Federal Transit Formula Grant and State of Good Repair Grant Assistance Listing 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 – During our audit we noted that the federal funds paybacks resulting from prior year grant reconciliations were not refunded in a timely manner. Questioned Costs – Unknown Cause/Effect – DTC is not in compliance with the cash management requirement.
Finding 2023-002
Program Name – All Assistance Listing 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. Questioned Costs – None Cause/Effect – The SEFA was not accurately stated as a result of not identifying certain federal award expenditures.
Finding 2023-003
Program Name – Federal Transit Formula Grant and State of Good Repair Grant Assistance Listing 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 – During our audit we noted that the federal funds paybacks resulting from prior year grant reconciliations were not refunded in a timely manner. Questioned Costs – Unknown Cause/Effect – DTC is not in compliance with the cash management requirement.
Finding 2023-002
Program Name – All Assistance Listing 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. Questioned Costs – None Cause/Effect – The SEFA was not accurately stated as a result of not identifying certain federal award expenditures.
Finding 2023-003
Program Name – Federal Transit Formula Grant and State of Good Repair Grant Assistance Listing 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 – During our audit we noted that the federal funds paybacks resulting from prior year grant reconciliations were not refunded in a timely manner. Questioned Costs – Unknown Cause/Effect – DTC is not in compliance with the cash management requirement.
Finding 2023-002
Program Name – All Assistance Listing 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. Questioned Costs – None Cause/Effect – The SEFA was not accurately stated as a result of not identifying certain federal award expenditures.
Finding 2023-003
Program Name – Federal Transit Formula Grant and State of Good Repair Grant Assistance Listing 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 – During our audit we noted that the federal funds paybacks resulting from prior year grant reconciliations were not refunded in a timely manner. Questioned Costs – Unknown Cause/Effect – DTC is not in compliance with the cash management requirement.
Finding 2023-002
Program Name – All Assistance Listing 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. Questioned Costs – None Cause/Effect – The SEFA was not accurately stated as a result of not identifying certain federal award expenditures.
Finding 2023-003
Program Name – Federal Transit Formula Grant and State of Good Repair Grant Assistance Listing 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 – During our audit we noted that the federal funds paybacks resulting from prior year grant reconciliations were not refunded in a timely manner. Questioned Costs – Unknown Cause/Effect – DTC is not in compliance with the cash management requirement.
Finding 2023-002
Program Name – All Assistance Listing 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. Questioned Costs – None Cause/Effect – The SEFA was not accurately stated as a result of not identifying certain federal award expenditures.
Finding 2023-003
Program Name – Federal Transit Formula Grant and State of Good Repair Grant Assistance Listing 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 – During our audit we noted that the federal funds paybacks resulting from prior year grant reconciliations were not refunded in a timely manner. Questioned Costs – Unknown Cause/Effect – DTC is not in compliance with the cash management requirement.
Finding 2023-002
Program Name – All Assistance Listing 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. Questioned Costs – None Cause/Effect – The SEFA was not accurately stated as a result of not identifying certain federal award expenditures.
Finding 2023-003
Program Name – Federal Transit Formula Grant and State of Good Repair Grant Assistance Listing 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 – During our audit we noted that the federal funds paybacks resulting from prior year grant reconciliations were not refunded in a timely manner. Questioned Costs – Unknown Cause/Effect – DTC is not in compliance with the cash management requirement.
Finding 2023-002
Program Name – All Assistance Listing 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. Questioned Costs – None Cause/Effect – The SEFA was not accurately stated as a result of not identifying certain federal award expenditures.
Finding 2023-003
Program Name – Federal Transit Formula Grant and State of Good Repair Grant Assistance Listing 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 – During our audit we noted that the federal funds paybacks resulting from prior year grant reconciliations were not refunded in a timely manner. Questioned Costs – Unknown Cause/Effect – DTC is not in compliance with the cash management requirement.
Finding 2023-002
Program Name – All Assistance Listing 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. Questioned Costs – None Cause/Effect – The SEFA was not accurately stated as a result of not identifying certain federal award expenditures.
Finding 2023-003
Program Name – Federal Transit Formula Grant and State of Good Repair Grant Assistance Listing 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 – During our audit we noted that the federal funds paybacks resulting from prior year grant reconciliations were not refunded in a timely manner. Questioned Costs – Unknown Cause/Effect – DTC is not in compliance with the cash management requirement.
Finding 2023-002
Program Name – All Assistance Listing 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. Questioned Costs – None Cause/Effect – The SEFA was not accurately stated as a result of not identifying certain federal award expenditures.
Finding 2023-003
Program Name – Federal Transit Formula Grant and State of Good Repair Grant Assistance Listing 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 – During our audit we noted that the federal funds paybacks resulting from prior year grant reconciliations were not refunded in a timely manner. Questioned Costs – Unknown Cause/Effect – DTC is not in compliance with the cash management requirement.