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.
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.
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.
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.
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.
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.
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.
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.
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.
Finding # 2023-002 Program: Various, including AL 20.509 – Formula Grants for Rural Areas and Tribal Transit Program – Reporting Grant Number & Year: Various Federal Grantor Agency: Various, including U.S. Department of Transportation Pass-Through Entity: Various, including Nebraska Department of Transportation Criteria: Title 2 of the U.S. Code of Federal Regulations (CFR) § 200.510(b) (January 1, 2023) states, in part, the following: The auditee must also 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 § 200.502. . . . (2) For Federal awards received as a subrecipient, the name of the passthrough entity and identifying number assigned by the pass-through entity must be included. . . . Title 2 CFR § 200.302(b) (January 1, 2023) states, in relevant part, the following: The financial management system of each non-Federal entity must provide for the following . . . (1) Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the Assistance Listings title and number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. Title 2 CFR § 200.303 (January 1, 2023) states the following, in relevant part: The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ‘‘Standards for Internal Control in the Federal Government’’ issued by the Comptroller General of the United States or the ‘‘Internal Control Integrated Framework’’, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2 CFR § 200.511(a) (January 1, 2023) requires the auditee to prepare a summary schedule of prior audit findings. Per subsection (b)(2) of that same regulation, “When audit findings were not corrected or were only partially corrected, the summary schedule must describe the reasons for the finding’s recurrence and planned corrective action, and any partial corrective action taken.” The U.S. Department of Transportation adopted the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards in Title 2 CFR § 1201.10 (January 1, 2023). A good internal control plan requires adequate procedures to ensure the Schedule of Expenditures Federal Awards (SEFA) is properly presented and includes all Federal expenditures made by the County during the fiscal year. Condition: Kimball County does not have adequate procedures in place to ensure the SEFA is prepared accurately and includes all Federal expenditures of the County. Consequently, there were numerous errors in the SEFA that were identified by the auditors. A similar finding was noted during the fiscal year 2022 audit. The Summary Schedule of Prior Audit Findings lists the status of this finding as complete. Repeat Finding: Finding # 2022-002 Questioned Costs: None Statistical Sample: No Context: Specifically, we noted the following errors during our audit: • Fiscal year 2023 Federal expenditures of $276,566 were improperly omitted from the SEFA for Assistance Listing 20.509. • Fiscal year 2022 Federal expenditures of $92,389 were improperly included as fiscal year 2023 expenditures for Assistance Listing 20.509. • Non-Federal expenditures of $253,869 were improperly included as Federal Expenditures for Assistance Listing 20.509. These expenditures were paid with State funds and, therefore, should not have been included on the SEFA. • The SEFA provided by Kimball County did not include the assistance listing number to which the expenditures were related, nor did it identify the name of the pass-through entity or the identifying number assigned by the pass-through entity. Corrections were made for these errors after they were identified by the auditors to ensure the SEFA was properly presented. Cause: Kimball County continues to lack personnel with adequate knowledge of Federal reporting and compliance requirements to prepare an accurate SEFA. Effect: Increased risk for the SEFA to be inaccurate, which could lead to Federal sanctions or failure to audit programs that should be audited. Recommendation: We recommend the County work with their pass-through entities to obtain training necessary to understand fully Federal reporting and compliance requirements, including how to prepare the SEFA accurately. View of Officials: The information provided to the auditors regarding the SEFA did contain additional information such as the Federal and State reimbursements for the months before and after the fiscal year. While it is our responsibility to provide just the information required, the information was trackable and accurate per month.
2023-003 Internal Control Over Financial Reporting Title and Assistance Listing Number of the Federal Program: 84.425D COVID-19 - Elementary and Secondary School Emergency Relief Fund; 84.425U COVID-19 - American Rescue plan - Elementary and Secondary School Emergency Relief Fiscal Year Finding Originated: 2023 Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Name of Federal Agency: Department of Education Pass-through Agency: Louisiana Department of Education / East Baton Rouge Parish School Board Questioned Costs: No questioned costs reported. Condition: Significant audit adjustments were required to fairly present the consolidated financial statements and related Schedule of Expenditures of Federal Awards (SEFA). Criteria: According to 2 CFR 200.508 “Auditee Responsibilities” the auditee must prepare appropriate financial statements, including the SEFA (as specifically defined under 2 CFR 200.510 “Financial statements”). Title 2 CFR 200.510 “Financial statements” requires recipients of Federal funds to prepare a SEFA for the period covered by the auditee’s financial statements, which must include the total Federal awards expended. In addition, as noted in 2 CFR 200.302 “Financial management”, the financial management system of each non-Federal entity must provide for identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received, and records that identify adequately the source and application of funds for federally-funded activities including expenditures. When federal expenditures are incurred over $750,000, a Single Audit is required to be performed under Uniform Guidance. Failure to properly record federal expenditures could cause the Academies to not have a Single Audit performed, or have it performed improperly, which would be considered noncompliant with Uniform Guidance. Cause: The impacts of the financial statement audit adjustments are as follows: • Accounts receivable and revenue related to Employee Retention Tax Credits were overstated by $600,000. • Revenues and expenditures related to reimbursement-based federal grants included in testing as a major program were understated $426,863. The Academies did not record certain grant revenues and expenditures for expenditures paid directly by the granting agency on behalf of the Academies. This adjustment impacted the SEFA and financial statements. • Revenue related to Child Nutrition Program funds were overstated $19,150. This adjustment impacted the SEFA and financial statements. • Adjustments to property and equipment resulting in a net increase to net assets of $29,583. • Adjustments to accumulated depreciation resulting in a net decrease in net assets of $54,906. • Adjustments to inter-school payable amounts resulting in a net increase in net assets of $23,015. • Adjustments to accounts payable resulting in a net increase in net assets of $60,179. • Adjustments to due to management company resulting in a net increase in net assets of $45,903. • Adjustments to compensated absences resulting in a net decrease in net assets of $24,391. Effect: The consolidated financial statements and related SEFA required material adjustments in order to be presented fairly. A lack of accounting practices can cause potential misstatements to remain unidentified and cause the financial statements and related schedules to be misleading. Noncompliance with Uniform Guidance may result in a temporary suspension of federal awards. Recommendation: We recommend the Academies implement monthly financial statement closing procedures which capture all relevant information necessary to reconcile accounts to supporting documentation on a timely basis. These procedures should include implementing internal controls over recording and monitoring revenues related to federal awards to ensure accuracy of funds recorded. Views of responsible officials: See views of responsible officials on page 36.