Criteria or specific requirement: Entities receiving federal awards must identify in its accounts all federal awards expended and report those amounts on the Schedule of Expenditures of Federal Awards for the period the federal award was expensed. Specifically, in accordance with Uniform Administrative Requirements outlined in 2 CFR 200, the guidance states: Per 2 CFR 200.502, The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Per 2 CFR 200.303, entities must establish and maintain internal controls which provide reasonable assurance that federal award expenditures are in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In addition, per 2 CFR 200.510, the Schedule of Expenditures of Federal Awards (SEFA) must be prepared to reflect the awards for the period covered by the auditee’s financial statements. Lastly, section 2 CFR 200.510 states that for costs to be allowable, they should be determined in accordance with generally accepted accounting principles (with exceptions provided in that part). Condition: The University’s year-end cutoff controls allowed for certain costs from Fiscal Year 2022 to not be reported in the Fiscal Year 2022 SEFA but rather reported in the Fiscal Year 2023 SEFA. Context: During our testing of 40 payroll transactions, we found one instance of 2022 fringe benefits being charged to a federal program in 2023. In addition, during our testing of 40 general disbursements transactions, we identified four instances of 2022 costs being charged to federal programs in 2023. Questioned costs: Known amounts of 2022 costs included in the 2023 SEFA was $3,214. (ALNs: 47.041, 47.083, 93.866, and 10.310 Award Numbers: 1663642, 1757324, R01AG059923, and 2022-67020-36410) Cause: Per the University, the cause for the five exceptions were due to: The one payroll exception was due to the 2021-2022 Human Capital Management (HCM) implementation and the issues that implementation brought about. As disclosed in a direct communication with the University’s cognizant agency, the initial custom software used for the allocation of fringe benefit costs did not work appropriately. As a result, throughout 2022, the University dedicated significant resources to address the HCM shortcomings. Then, in 2023, various corrections were made (again, as disclosed to the cognizant agency.) This sample was one of those costs that was identified as not properly being allocated to the federal program in the prior year; thus, was charged to the federal government in the current fiscal year. Three of the four general disbursement exceptions related to the University’s procurement card accrual policy. Currently, the University’s accrues for procurement card purchases through June 23, which leaves seven days of activity that flows into the next fiscal year. Three of our samples relate to procurement card charges incurred during these seven days. The last of the four general disbursements that related to a prior year but reported in the Fiscal Year 2023 was due to a staffing issue. A key employee responsible for monitoring specific departmental charges fell ill and was out for a period of time. Upon the employee’s return, the employee spent time analyzing charges and identified the cost that should have been recorded as a federal charge in the prior year; thus, then charged the federal agency in Fiscal Year 2023. Effect: The University was out of compliance as it relates to identifying and reporting federal costs in the period incurred. Repeat finding: No Recommendation: We recommend the University evaluate its cutoff procedures to ensure federal costs are identified and reported in the correct fiscal year. Views of responsible officials: Management agrees with the finding and has developed a plan to correct the finding.
Criteria or specific requirement: Entities receiving federal awards must identify in its accounts all federal awards expended and report those amounts on the Schedule of Expenditures of Federal Awards for the period the federal award was expensed. Specifically, in accordance with Uniform Administrative Requirements outlined in 2 CFR 200, the guidance states: Per 2 CFR 200.502, The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Per 2 CFR 200.303, entities must establish and maintain internal controls which provide reasonable assurance that federal award expenditures are in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In addition, per 2 CFR 200.510, the Schedule of Expenditures of Federal Awards (SEFA) must be prepared to reflect the awards for the period covered by the auditee’s financial statements. Lastly, section 2 CFR 200.510 states that for costs to be allowable, they should be determined in accordance with generally accepted accounting principles (with exceptions provided in that part). Condition: The University’s year-end cutoff controls allowed for certain costs from Fiscal Year 2022 to not be reported in the Fiscal Year 2022 SEFA but rather reported in the Fiscal Year 2023 SEFA. Context: During our testing of 40 payroll transactions, we found one instance of 2022 fringe benefits being charged to a federal program in 2023. In addition, during our testing of 40 general disbursements transactions, we identified four instances of 2022 costs being charged to federal programs in 2023. Questioned costs: Known amounts of 2022 costs included in the 2023 SEFA was $3,214. (ALNs: 47.041, 47.083, 93.866, and 10.310 Award Numbers: 1663642, 1757324, R01AG059923, and 2022-67020-36410) Cause: Per the University, the cause for the five exceptions were due to: The one payroll exception was due to the 2021-2022 Human Capital Management (HCM) implementation and the issues that implementation brought about. As disclosed in a direct communication with the University’s cognizant agency, the initial custom software used for the allocation of fringe benefit costs did not work appropriately. As a result, throughout 2022, the University dedicated significant resources to address the HCM shortcomings. Then, in 2023, various corrections were made (again, as disclosed to the cognizant agency.) This sample was one of those costs that was identified as not properly being allocated to the federal program in the prior year; thus, was charged to the federal government in the current fiscal year. Three of the four general disbursement exceptions related to the University’s procurement card accrual policy. Currently, the University’s accrues for procurement card purchases through June 23, which leaves seven days of activity that flows into the next fiscal year. Three of our samples relate to procurement card charges incurred during these seven days. The last of the four general disbursements that related to a prior year but reported in the Fiscal Year 2023 was due to a staffing issue. A key employee responsible for monitoring specific departmental charges fell ill and was out for a period of time. Upon the employee’s return, the employee spent time analyzing charges and identified the cost that should have been recorded as a federal charge in the prior year; thus, then charged the federal agency in Fiscal Year 2023. Effect: The University was out of compliance as it relates to identifying and reporting federal costs in the period incurred. Repeat finding: No Recommendation: We recommend the University evaluate its cutoff procedures to ensure federal costs are identified and reported in the correct fiscal year. Views of responsible officials: Management agrees with the finding and has developed a plan to correct the finding.
Criteria: According to 2 CFR Subpart F Section 200.510b, the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period that includes all amounts spent on federal programs during the reporting period. Condition: The initial SEFA provided for audit did not agree to the accounting system general ledger expenditures for certain awards. In addition, not all federal awards were appropriately identified and included on the SEFA. Cause: PPHS had significant turnover in finance personnel during the 22-23 school year. In addition, the SEFA was prepared utilizing federal award revenue. Lastly, one award was incorrectly identified as other revenue instead of federal award revenue. Effect: The total federal award expenditures reported on the initial SEFA were reduced by $198,208. The following awards were reduced on the SEFA to agree to award expenditures by the following amounts: National School Lunch Program 10.555 $125,864, Charter Schools Program 84.282A $32,555, Elementary and Secondary School Emergency Relief 84.425D $92,405, and Emergency Connectivity Fund 32.009 $109,450. The following award was added to the SEFA Coronavirus State and Local Fiscal Recovery Funds 21.027 $164,766. Recommendation: PPHS should prepare the SEFA based on federal award expenditures, rather than revenue. In addition, PPHS should implement a review process for the SEFA whereby key members of management review the SEFA for completeness. Views of responsible officials: See attached corrective action plan.
Criteria: According to 2 CFR Subpart F Section 200.510b, the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period that includes all amounts spent on federal programs during the reporting period. Condition: The initial SEFA provided for audit did not agree to the accounting system general ledger expenditures for certain awards. In addition, not all federal awards were appropriately identified and included on the SEFA. Cause: PPHS had significant turnover in finance personnel during the 22-23 school year. In addition, the SEFA was prepared utilizing federal award revenue. Lastly, one award was incorrectly identified as other revenue instead of federal award revenue. Effect: The total federal award expenditures reported on the initial SEFA were reduced by $198,208. The following awards were reduced on the SEFA to agree to award expenditures by the following amounts: National School Lunch Program 10.555 $125,864, Charter Schools Program 84.282A $32,555, Elementary and Secondary School Emergency Relief 84.425D $92,405, and Emergency Connectivity Fund 32.009 $109,450. The following award was added to the SEFA Coronavirus State and Local Fiscal Recovery Funds 21.027 $164,766. Recommendation: PPHS should prepare the SEFA based on federal award expenditures, rather than revenue. In addition, PPHS should implement a review process for the SEFA whereby key members of management review the SEFA for completeness. Views of responsible officials: See attached corrective action plan.
Criteria: According to 2 CFR Subpart F Section 200.510b, the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period that includes all amounts spent on federal programs during the reporting period. Condition: The initial SEFA provided for audit did not agree to the accounting system general ledger expenditures for certain awards. In addition, not all federal awards were appropriately identified and included on the SEFA. Cause: PPHS had significant turnover in finance personnel during the 22-23 school year. In addition, the SEFA was prepared utilizing federal award revenue. Lastly, one award was incorrectly identified as other revenue instead of federal award revenue. Effect: The total federal award expenditures reported on the initial SEFA were reduced by $198,208. The following awards were reduced on the SEFA to agree to award expenditures by the following amounts: National School Lunch Program 10.555 $125,864, Charter Schools Program 84.282A $32,555, Elementary and Secondary School Emergency Relief 84.425D $92,405, and Emergency Connectivity Fund 32.009 $109,450. The following award was added to the SEFA Coronavirus State and Local Fiscal Recovery Funds 21.027 $164,766. Recommendation: PPHS should prepare the SEFA based on federal award expenditures, rather than revenue. In addition, PPHS should implement a review process for the SEFA whereby key members of management review the SEFA for completeness. Views of responsible officials: See attached corrective action plan.
Criteria: According to 2 CFR Subpart F Section 200.510b, the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period that includes all amounts spent on federal programs during the reporting period. Condition: The initial SEFA provided for audit did not agree to the accounting system general ledger expenditures for certain awards. In addition, not all federal awards were appropriately identified and included on the SEFA. Cause: PPHS had significant turnover in finance personnel during the 22-23 school year. In addition, the SEFA was prepared utilizing federal award revenue. Lastly, one award was incorrectly identified as other revenue instead of federal award revenue. Effect: The total federal award expenditures reported on the initial SEFA were reduced by $198,208. The following awards were reduced on the SEFA to agree to award expenditures by the following amounts: National School Lunch Program 10.555 $125,864, Charter Schools Program 84.282A $32,555, Elementary and Secondary School Emergency Relief 84.425D $92,405, and Emergency Connectivity Fund 32.009 $109,450. The following award was added to the SEFA Coronavirus State and Local Fiscal Recovery Funds 21.027 $164,766. Recommendation: PPHS should prepare the SEFA based on federal award expenditures, rather than revenue. In addition, PPHS should implement a review process for the SEFA whereby key members of management review the SEFA for completeness. Views of responsible officials: See attached corrective action plan.
Criteria: According to 2 CFR Subpart F Section 200.510b, the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period that includes all amounts spent on federal programs during the reporting period. Condition: The initial SEFA provided for audit did not agree to the accounting system general ledger expenditures for certain awards. In addition, not all federal awards were appropriately identified and included on the SEFA. Cause: PPHS had significant turnover in finance personnel during the 22-23 school year. In addition, the SEFA was prepared utilizing federal award revenue. Lastly, one award was incorrectly identified as other revenue instead of federal award revenue. Effect: The total federal award expenditures reported on the initial SEFA were reduced by $198,208. The following awards were reduced on the SEFA to agree to award expenditures by the following amounts: National School Lunch Program 10.555 $125,864, Charter Schools Program 84.282A $32,555, Elementary and Secondary School Emergency Relief 84.425D $92,405, and Emergency Connectivity Fund 32.009 $109,450. The following award was added to the SEFA Coronavirus State and Local Fiscal Recovery Funds 21.027 $164,766. Recommendation: PPHS should prepare the SEFA based on federal award expenditures, rather than revenue. In addition, PPHS should implement a review process for the SEFA whereby key members of management review the SEFA for completeness. Views of responsible officials: See attached corrective action plan.
Criteria: According to 2 CFR Subpart F Section 200.510b, the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period that includes all amounts spent on federal programs during the reporting period. Condition: The initial SEFA provided for audit did not agree to the accounting system general ledger expenditures for certain awards. In addition, not all federal awards were appropriately identified and included on the SEFA. Cause: PPHS had significant turnover in finance personnel during the 22-23 school year. In addition, the SEFA was prepared utilizing federal award revenue. Lastly, one award was incorrectly identified as other revenue instead of federal award revenue. Effect: The total federal award expenditures reported on the initial SEFA were reduced by $198,208. The following awards were reduced on the SEFA to agree to award expenditures by the following amounts: National School Lunch Program 10.555 $125,864, Charter Schools Program 84.282A $32,555, Elementary and Secondary School Emergency Relief 84.425D $92,405, and Emergency Connectivity Fund 32.009 $109,450. The following award was added to the SEFA Coronavirus State and Local Fiscal Recovery Funds 21.027 $164,766. Recommendation: PPHS should prepare the SEFA based on federal award expenditures, rather than revenue. In addition, PPHS should implement a review process for the SEFA whereby key members of management review the SEFA for completeness. Views of responsible officials: See attached corrective action plan.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Assistance Listing, Federal Agency, and Program Name - 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year - All Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2023. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $2,591,504 of federal expenditures where goods and services had been received as of June 30, 2023 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2023 and therefore should not have been included in the cash basis SEFA. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation - The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan - The SEFA was originally prepared on an accrual basis as has been done in prior years. Due to the ability to use Covid-19 funding for operating expenses, the reporting basis was changed from accrual to cash in FY21-22 without changing internal procedures for creation of the SEFA. This caused the FY22-23 SEFA to be completed on an accrual basis and need to be revised and resubmitted to the auditors. The corrective action has been implemented to revise internal procedures to prepare the SEFA on a cash basis for future fiscal years. This includes the creation of a reconciliation schedule to the financial statements which are prepared on an accrual basis.
Condition During our audit, we identified several key accounts that had not been reviewed as of June 30, 2023. These accounts included: accounts receivable, revenue and long-term debt. As a result, the financial statements as of and for the year ended June 30, 2023, required additional time and analysis before the financial statements could be finalized and available for issuance. This also required audit adjustments that had a negative impact on net assets of $1,407,187. Criteria Per the Uniform Guidance, the School must maintain an adequate system of internal control over financial reporting in order to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, § 200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause The School does not have adequate internal controls over financial reporting in place to ensure supervisory review and analysis for certain key accounts on a timely basis. Effect The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors and irregularities to go undetected. Recommendation We recommend the School continue to reinforce its processes and procedures to ensure reconciliations and account analysis are completed and reviewed by appropriate supervisory personnel. The School should ensure accurate interim and year-end financial statements. Questioned Costs None. Managements Response Management agrees with the finding. See Schedule of Correction Action Plans. Auditor’s Conclusion: Finding remains as stated.
Condition During our audit, we identified several key accounts that had not been reviewed as of June 30, 2023. These accounts included: accounts receivable, revenue and long-term debt. As a result, the financial statements as of and for the year ended June 30, 2023, required additional time and analysis before the financial statements could be finalized and available for issuance. This also required audit adjustments that had a negative impact on net assets of $1,407,187. Criteria Per the Uniform Guidance, the School must maintain an adequate system of internal control over financial reporting in order to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, § 200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause The School does not have adequate internal controls over financial reporting in place to ensure supervisory review and analysis for certain key accounts on a timely basis. Effect The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors and irregularities to go undetected. Recommendation We recommend the School continue to reinforce its processes and procedures to ensure reconciliations and account analysis are completed and reviewed by appropriate supervisory personnel. The School should ensure accurate interim and year-end financial statements. Questioned Costs None. Managements Response Management agrees with the finding. See Schedule of Correction Action Plans. Auditor’s Conclusion: Finding remains as stated.
Condition During our audit, we identified several key accounts that had not been reviewed as of June 30, 2023. These accounts included: accounts receivable, revenue and long-term debt. As a result, the financial statements as of and for the year ended June 30, 2023, required additional time and analysis before the financial statements could be finalized and available for issuance. This also required audit adjustments that had a negative impact on net assets of $1,407,187. Criteria Per the Uniform Guidance, the School must maintain an adequate system of internal control over financial reporting in order to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, § 200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause The School does not have adequate internal controls over financial reporting in place to ensure supervisory review and analysis for certain key accounts on a timely basis. Effect The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors and irregularities to go undetected. Recommendation We recommend the School continue to reinforce its processes and procedures to ensure reconciliations and account analysis are completed and reviewed by appropriate supervisory personnel. The School should ensure accurate interim and year-end financial statements. Questioned Costs None. Managements Response Management agrees with the finding. See Schedule of Correction Action Plans. Auditor’s Conclusion: Finding remains as stated.
Condition During our audit, we identified several key accounts that had not been reviewed as of June 30, 2023. These accounts included: accounts receivable, revenue and long-term debt. As a result, the financial statements as of and for the year ended June 30, 2023, required additional time and analysis before the financial statements could be finalized and available for issuance. This also required audit adjustments that had a negative impact on net assets of $1,407,187. Criteria Per the Uniform Guidance, the School must maintain an adequate system of internal control over financial reporting in order to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, § 200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause The School does not have adequate internal controls over financial reporting in place to ensure supervisory review and analysis for certain key accounts on a timely basis. Effect The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors and irregularities to go undetected. Recommendation We recommend the School continue to reinforce its processes and procedures to ensure reconciliations and account analysis are completed and reviewed by appropriate supervisory personnel. The School should ensure accurate interim and year-end financial statements. Questioned Costs None. Managements Response Management agrees with the finding. See Schedule of Correction Action Plans. Auditor’s Conclusion: Finding remains as stated.
Condition During our audit, we identified several key accounts that had not been reviewed as of June 30, 2023. These accounts included: accounts receivable, revenue and long-term debt. As a result, the financial statements as of and for the year ended June 30, 2023, required additional time and analysis before the financial statements could be finalized and available for issuance. This also required audit adjustments that had a negative impact on net assets of $1,407,187. Criteria Per the Uniform Guidance, the School must maintain an adequate system of internal control over financial reporting in order to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, § 200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause The School does not have adequate internal controls over financial reporting in place to ensure supervisory review and analysis for certain key accounts on a timely basis. Effect The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors and irregularities to go undetected. Recommendation We recommend the School continue to reinforce its processes and procedures to ensure reconciliations and account analysis are completed and reviewed by appropriate supervisory personnel. The School should ensure accurate interim and year-end financial statements. Questioned Costs None. Managements Response Management agrees with the finding. See Schedule of Correction Action Plans. Auditor’s Conclusion: Finding remains as stated.
Condition During our audit, we identified several key accounts that had not been reviewed as of June 30, 2023. These accounts included: accounts receivable, revenue and long-term debt. As a result, the financial statements as of and for the year ended June 30, 2023, required additional time and analysis before the financial statements could be finalized and available for issuance. This also required audit adjustments that had a negative impact on net assets of $1,407,187. Criteria Per the Uniform Guidance, the School must maintain an adequate system of internal control over financial reporting in order to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, § 200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause The School does not have adequate internal controls over financial reporting in place to ensure supervisory review and analysis for certain key accounts on a timely basis. Effect The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors and irregularities to go undetected. Recommendation We recommend the School continue to reinforce its processes and procedures to ensure reconciliations and account analysis are completed and reviewed by appropriate supervisory personnel. The School should ensure accurate interim and year-end financial statements. Questioned Costs None. Managements Response Management agrees with the finding. See Schedule of Correction Action Plans. Auditor’s Conclusion: Finding remains as stated.
Condition During our audit, we identified several key accounts that had not been reviewed as of June 30, 2023. These accounts included: accounts receivable, revenue and long-term debt. As a result, the financial statements as of and for the year ended June 30, 2023, required additional time and analysis before the financial statements could be finalized and available for issuance. This also required audit adjustments that had a negative impact on net assets of $1,407,187. Criteria Per the Uniform Guidance, the School must maintain an adequate system of internal control over financial reporting in order to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, § 200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause The School does not have adequate internal controls over financial reporting in place to ensure supervisory review and analysis for certain key accounts on a timely basis. Effect The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors and irregularities to go undetected. Recommendation We recommend the School continue to reinforce its processes and procedures to ensure reconciliations and account analysis are completed and reviewed by appropriate supervisory personnel. The School should ensure accurate interim and year-end financial statements. Questioned Costs None. Managements Response Management agrees with the finding. See Schedule of Correction Action Plans. Auditor’s Conclusion: Finding remains as stated.
Condition During our audit, we identified several key accounts that had not been reviewed as of June 30, 2023. These accounts included: accounts receivable, revenue and long-term debt. As a result, the financial statements as of and for the year ended June 30, 2023, required additional time and analysis before the financial statements could be finalized and available for issuance. This also required audit adjustments that had a negative impact on net assets of $1,407,187. Criteria Per the Uniform Guidance, the School must maintain an adequate system of internal control over financial reporting in order to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, § 200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause The School does not have adequate internal controls over financial reporting in place to ensure supervisory review and analysis for certain key accounts on a timely basis. Effect The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors and irregularities to go undetected. Recommendation We recommend the School continue to reinforce its processes and procedures to ensure reconciliations and account analysis are completed and reviewed by appropriate supervisory personnel. The School should ensure accurate interim and year-end financial statements. Questioned Costs None. Managements Response Management agrees with the finding. See Schedule of Correction Action Plans. Auditor’s Conclusion: Finding remains as stated.
Condition During our audit, we identified several key accounts that had not been reviewed as of June 30, 2023. These accounts included: accounts receivable, revenue and long-term debt. As a result, the financial statements as of and for the year ended June 30, 2023, required additional time and analysis before the financial statements could be finalized and available for issuance. This also required audit adjustments that had a negative impact on net assets of $1,407,187. Criteria Per the Uniform Guidance, the School must maintain an adequate system of internal control over financial reporting in order to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, § 200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause The School does not have adequate internal controls over financial reporting in place to ensure supervisory review and analysis for certain key accounts on a timely basis. Effect The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors and irregularities to go undetected. Recommendation We recommend the School continue to reinforce its processes and procedures to ensure reconciliations and account analysis are completed and reviewed by appropriate supervisory personnel. The School should ensure accurate interim and year-end financial statements. Questioned Costs None. Managements Response Management agrees with the finding. See Schedule of Correction Action Plans. Auditor’s Conclusion: Finding remains as stated.
Condition During our audit, we identified several key accounts that had not been reviewed as of June 30, 2023. These accounts included: accounts receivable, revenue and long-term debt. As a result, the financial statements as of and for the year ended June 30, 2023, required additional time and analysis before the financial statements could be finalized and available for issuance. This also required audit adjustments that had a negative impact on net assets of $1,407,187. Criteria Per the Uniform Guidance, the School must maintain an adequate system of internal control over financial reporting in order to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, § 200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause The School does not have adequate internal controls over financial reporting in place to ensure supervisory review and analysis for certain key accounts on a timely basis. Effect The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors and irregularities to go undetected. Recommendation We recommend the School continue to reinforce its processes and procedures to ensure reconciliations and account analysis are completed and reviewed by appropriate supervisory personnel. The School should ensure accurate interim and year-end financial statements. Questioned Costs None. Managements Response Management agrees with the finding. See Schedule of Correction Action Plans. Auditor’s Conclusion: Finding remains as stated.
Condition During our audit, we identified several key accounts that had not been reviewed as of June 30, 2023. These accounts included: accounts receivable, revenue and long-term debt. As a result, the financial statements as of and for the year ended June 30, 2023, required additional time and analysis before the financial statements could be finalized and available for issuance. This also required audit adjustments that had a negative impact on net assets of $1,407,187. Criteria Per the Uniform Guidance, the School must maintain an adequate system of internal control over financial reporting in order to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, § 200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause The School does not have adequate internal controls over financial reporting in place to ensure supervisory review and analysis for certain key accounts on a timely basis. Effect The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors and irregularities to go undetected. Recommendation We recommend the School continue to reinforce its processes and procedures to ensure reconciliations and account analysis are completed and reviewed by appropriate supervisory personnel. The School should ensure accurate interim and year-end financial statements. Questioned Costs None. Managements Response Management agrees with the finding. See Schedule of Correction Action Plans. Auditor’s Conclusion: Finding remains as stated.
Condition During our audit, we identified several key accounts that had not been reviewed as of June 30, 2023. These accounts included: accounts receivable, revenue and long-term debt. As a result, the financial statements as of and for the year ended June 30, 2023, required additional time and analysis before the financial statements could be finalized and available for issuance. This also required audit adjustments that had a negative impact on net assets of $1,407,187. Criteria Per the Uniform Guidance, the School must maintain an adequate system of internal control over financial reporting in order to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, § 200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause The School does not have adequate internal controls over financial reporting in place to ensure supervisory review and analysis for certain key accounts on a timely basis. Effect The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors and irregularities to go undetected. Recommendation We recommend the School continue to reinforce its processes and procedures to ensure reconciliations and account analysis are completed and reviewed by appropriate supervisory personnel. The School should ensure accurate interim and year-end financial statements. Questioned Costs None. Managements Response Management agrees with the finding. See Schedule of Correction Action Plans. Auditor’s Conclusion: Finding remains as stated.
Condition During our audit, we identified several key accounts that had not been reviewed as of June 30, 2023. These accounts included: accounts receivable, revenue and long-term debt. As a result, the financial statements as of and for the year ended June 30, 2023, required additional time and analysis before the financial statements could be finalized and available for issuance. This also required audit adjustments that had a negative impact on net assets of $1,407,187. Criteria Per the Uniform Guidance, the School must maintain an adequate system of internal control over financial reporting in order to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, § 200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause The School does not have adequate internal controls over financial reporting in place to ensure supervisory review and analysis for certain key accounts on a timely basis. Effect The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors and irregularities to go undetected. Recommendation We recommend the School continue to reinforce its processes and procedures to ensure reconciliations and account analysis are completed and reviewed by appropriate supervisory personnel. The School should ensure accurate interim and year-end financial statements. Questioned Costs None. Managements Response Management agrees with the finding. See Schedule of Correction Action Plans. Auditor’s Conclusion: Finding remains as stated.
Condition During our audit, we identified several key accounts that had not been reviewed as of June 30, 2023. These accounts included: accounts receivable, revenue and long-term debt. As a result, the financial statements as of and for the year ended June 30, 2023, required additional time and analysis before the financial statements could be finalized and available for issuance. This also required audit adjustments that had a negative impact on net assets of $1,407,187. Criteria Per the Uniform Guidance, the School must maintain an adequate system of internal control over financial reporting in order to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, § 200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause The School does not have adequate internal controls over financial reporting in place to ensure supervisory review and analysis for certain key accounts on a timely basis. Effect The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors and irregularities to go undetected. Recommendation We recommend the School continue to reinforce its processes and procedures to ensure reconciliations and account analysis are completed and reviewed by appropriate supervisory personnel. The School should ensure accurate interim and year-end financial statements. Questioned Costs None. Managements Response Management agrees with the finding. See Schedule of Correction Action Plans. Auditor’s Conclusion: Finding remains as stated.
Condition During our audit, we identified several key accounts that had not been reviewed as of June 30, 2023. These accounts included: accounts receivable, revenue and long-term debt. As a result, the financial statements as of and for the year ended June 30, 2023, required additional time and analysis before the financial statements could be finalized and available for issuance. This also required audit adjustments that had a negative impact on net assets of $1,407,187. Criteria Per the Uniform Guidance, the School must maintain an adequate system of internal control over financial reporting in order to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, § 200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause The School does not have adequate internal controls over financial reporting in place to ensure supervisory review and analysis for certain key accounts on a timely basis. Effect The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors and irregularities to go undetected. Recommendation We recommend the School continue to reinforce its processes and procedures to ensure reconciliations and account analysis are completed and reviewed by appropriate supervisory personnel. The School should ensure accurate interim and year-end financial statements. Questioned Costs None. Managements Response Management agrees with the finding. See Schedule of Correction Action Plans. Auditor’s Conclusion: Finding remains as stated.
2023-006 – Completeness and accuracy of certain programs on the Prior Year Schedules of Expenditures of Federal Awards (SEFA) - (Significant Deficiency) Cluster: Not applicable Sponsoring Agency: Department of Health and Human Services (DHHS) - Health Resources and Services Administration (HRSA), Department of Education (ED) and Federal Emergency Management Agency (FEMA) Award Names: COVID-19 Provider Relief Fund and ARP (ARP) Rural Distribution (PRF), COVID-19 Higher Education Emergency Relief Fund (HEERF) Student Portion, COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) and Maternal and Child Health Federal Consolidated Programs Award Numbers: Various Assistance Listing Titles: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution, COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters), COVID-19 Higher Education Emergency Relief Fund (HEERF) Student Aid Portion, COVID-19 HEERF Institutional Aid Portion, COVID-19 HEERF Minority Serving Institutions and Maternal and Child Health Federal Consolidated Programs Assistance Listing Number: 93.498, 97.036, 84.425E, 84.425F, 84.425L, 93.110 Award Year: 2020-2021, 2021-2022, 2019-2020, 2021-2023 Pass-through entity: Not applicable Criteria 2 CFR 200.510 Financial statements requires auditees to prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records and other federal guidance. Condition The following errors were identified related to COVID-19 funding that was improperly excluded from prior year SEFAs and is being included in the FY2023 SEFA along with two issues related to current year activity that has been adjusted in the FY2023 SEFA: • FEMA o One campus and two medical centers had FEMA funding obligated and expended in FY2021 totaling $7.0 million, which was incorrectly excluded from the FY2021 SEFA. Management has included this amount on the FY2023 SEFA, and onethis of these medical centerscampus was selected for audit testing in FY2023. o Three campuses and one medical center had FEMA funding obligated and expended in FY2022 totaling $1.3 million, which was incorrectly excluded from the FY2022 SEFA. o One campus duplicated a project of $6.2 million in the SEFA during the preparation process and subsequently removed it to properly state the FY2023 SEFA. • PRF - Management at the University Office of the President brought to our attention that in the prior year, the PRF Period Two expenditures for a faculty practice group that is part of one campus, were not included on the FY2022 SEFA. This error totaled $13.4 million and represented 4% of total Period Two PRF expenditures included on the FY2022 SEFA and 0.2% of the total FY2022 SEFA. Management has included this amount on the 2023 SEFA and the campus was selected for audit testing in FY2023. • HEERF – One campus understated its HEERF funding by $286 thousand in 2020, two campuses understated their HEERF funding by $767 thousand in 2021 and four campuses understated their HEERF funding by $3.4 million in FY 2022. As such, the University recorded an adjustment of $4.4 million related to prior periods that increased the expenditures in the FY2023 SEFA for these previous omissions. These were identified by management through final HEERF reconciliations. In addition to the COVID-19 errors above, we identified that assistance listing 93.110 at one campus included $29 million of spending against accumulated program income in the FY2023 SEFA, which should have been excluded. This amount has been appropriately removed but was not identified by management through the SEFA review process. These errors did not impact the major program determination in 2021, 2022 or 2023 when considering programs across the University as a whole but has been determined to be a significant deficiency and is considered a repeat finding of 2022-008. Cause The COVID-19 pandemic resulted in the receipt and expenditure of federal funds across certain University medical centers where there has previously been limited to no federal funding and also resulted in a different nature of funding at certain of the campuses. The preparation of the SEFA requires information from each campus be provided to the University Office of the President for compilation, and the aggregation of the COVID-19 PRF and FEMA funding was manual. In addition, there was limited knowledge of the federal funding at the medical centers and thus a reliance on the part of management that each campus was reporting complete and accurate information. A final reconciliation of all portal submissions compared to the amounts on the SEFA also failed to detect the omitted PRF and FEMA expenditures in 2021 and 2022. Additionally, regarding the omitted HEERF amounts, the campuses did not discover the errors until reconciling FY2023 amounts to the GL and total award spending. Lastly, the campus used a federal general ledger code to track spending on accumulated program income and did not identify this as a code that should be excluded by the University Office of the President when accumulating the SEFA. Effect A SEFA that is not complete and accurate could impact the scoping of an entity’s major programs and result in incomplete information being provided to the federal government. Questioned Costs None noted. Recommendation We recommend updates on nonrecurring federal programs (e.g., FEMA, HEERF and PRF) at each campus (including the medical centers) be periodically provided to the team at the University Office of the President that is responsible for the compilation of the SEFA. This will allow for a more comprehensive understanding of the campus grant activity for these programs and the ability to better review and assess the completeness and accuracy reported for these programs on the University’s year-end SEFA, inclusive of these programs. One means by which this might be accomplished is to develop a checklist of anticipated awards by campus in advance of the year and also complete an interim SEFA to identify inconsistencies earlier in the fiscal year. We recommend the campuses review the interim SEFA for completeness and accuracy and provide a formal sign-off/approval to the University Office of the President. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.