Finding 1176371 (2024-005)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2026-03-04
Audit: 390191
Organization: Central Community Transit (MN)

AI Summary

  • Core Issue: The audit report for the Transit Board was not submitted on time, violating compliance requirements.
  • Impacted Requirements: The deadline for filing with the Federal Clearinghouse is 30 days post-audit report or 9 months after year-end.
  • Recommended Follow-Up: The operation board should establish an annual audit schedule timeline before year-end to prevent future delays.

Finding Text

2024 – 005 Uniform Guidance Audit Reporting Requirements Federal Agency: Department of Transportation Federal Program: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Award Identification Number and Year: MN-2020-020-01, MN-2023-045-00 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Number: MN-2020-020-01, MN-2023-045-00 Award Period: Year Ended December 31, 2024 Compliance Requirements Affected: Cash Management Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Criteria or specific requirement: The deadline for filing an audit report with the Federal Clearinghouse is 30 days after receiving the audit report or 9 months after year-end, whichever occurs first. Condition: The audit report was not completed and submitted within the required timeframe. Questioned Costs: None Context: The Transit Board did not complete and submit the audit report within the required timeframe. Cause: Employee turnover in the Transit Director position. Effect: They are not in compliance with the Uniform Guidance audit requirements. Repeat Finding: Yes 2023-003 Recommendation: We recommend that prior to year-end, the operation board annually approve an audit schedule timeline. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

2024-005 UNIFORM GUIDANCE AUDIT REPORTING REQUIREMENTS Federal Agency: Department of Transportation Federal Program: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Award Identification Number and Year: MN-2020-020-01 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Number: MN-2020-020-01, MN-2023-045-00 Award Period: Year Ended December 31, 2024 Compliance Requirement: Cash Management Type of Finding: Material Weakness in Internal Controls over Compliance Recommendation: The deadline for filing an audit report with the Federal Clearinghouse is 30 days after receiving the audit report or 9 months after year-end, whichever occurs first. It is recommended that prior to year-end, the operation board annually approve an audit schedule timeline. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Transit Board will annually approve a schedule and timeline prior to year-end. In addition, the Transit Board has hired new external auditors who will have sufficient resources to complete the audit by the September 30, 2026 deadline for the December 31, 2025, audit. Name of the contact person responsible for corrective action: Cecilia Mutharia, Transit Director Planned completion date for corrective action plan: June 30, 2026

Categories

Cash Management Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1176367 2024-004
    Material Weakness Repeat
  • 1176368 2024-005
    Material Weakness Repeat
  • 1176369 2024-006
    Material Weakness Repeat
  • 1176370 2024-004
    Material Weakness Repeat
  • 1176372 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.500 FEDERAL TRANSIT CAPITAL INVESTMENT GRANTS $162,288
20.509 FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM $152,760
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $88,540
20.526 BUSES AND BUS FACILITIES FORMULA, COMPETITIVE, AND LOW OR NO EMISSIONS PROGRAMS $82,764
84.126 REHABILITATION SERVICES VOCATIONAL REHABILITATION GRANTS TO STATES $2,864