Finding 403627 (2022-002)

Significant Deficiency Repeat Finding

Requirement

Questioned Costs

Year

2022

Accepted

2024-06-28

Audit: 310676

Organization: Birmingham Jefferson County Transit Authority (AL)

Auditor: Warren Averett LLC

AI Summary

Core Issue: The Authority did not submit the required data collection form and audit reporting package on time to the Federal Audit Clearinghouse.
Impacted Requirements: This failure violates 2 CFR section 200.512, which mandates submission within 30 days of receiving audit reports or nine months after the audit period.
Recommended Follow-Up: Ensure future submissions are timely and accurate to avoid being classified as a high-risk auditee, which could affect grants.

Finding Text

Finding 2022-002 – Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. The data elements and format must be approved by OMB and include all required elements. Condition: The Authority failed to timely submit the data collection form or audit reporting package to the Federal Audit Clearinghouse for the period ended September 30, 2022. Cause: The Authority did not meet the submission date of June 30, 2023 for the September 30, 2022 audit. Effect: The Authority is considered a high-risk auditee. This classification can impact current and future grants. Questioned Costs: None reported Recommendation: It is recommended the Authority ensure timely and accurate submissions of the audit reporting package to the Federal Audit Clearinghouse. Views of Responsible Officials and Planned Corrective Actions: See Management’s View and Corrective Action Plan included at the end of the report.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: The Authority encountered several challenges closing its books for 2022. These challenges included (1) the adoption and implementation of a new accounting pronouncement, which required the restatement of the prior year’s financial statements, (2) the need to obtain appropriate property values for a significant donation and (3) staff turnover in key financial positions. These challenges which occurred within a short time frame prolonged the time needed to close the books and start the 2022 yearend audit. Although the adoption of a new accounting pronouncement and valuation of property from donors are infrequent events and not likely to recur soon, the Authority continues to experience higher than desired staff turnover. We believe our current staff is adequate to perform routine accounting and financial processes timely and accurately, and we remain committed to attracting and retaining experienced staff to further the goals and ideals of the Authority and to ensure that we can submit the reporting package to the Federal Audit Clearinghouse by the prescribed due date. Contact Person Responsible for Corrective Action: Glenn Dickerson, CPA — Chief Financial Officer Anticipated Completion Date: August 2024

Other Findings in this Audit

403628 2022-002

Significant Deficiency Repeat
403629 2022-002

Significant Deficiency Repeat
403630 2022-002

Significant Deficiency Repeat
980069 2022-002

Significant Deficiency Repeat
980070 2022-002

Significant Deficiency Repeat
980071 2022-002

Significant Deficiency Repeat
980072 2022-002

Significant Deficiency Repeat

Programs in Audit

ALN	Program Name	Expenditures
20.507	Federal Transit_formula Grants	$10.11M
20.526	Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs	$602,402
20.513	Enhanced Mobility of Seniors and Individuals with Disabilities	$63,754
20.500	Federal Transit_capital Investment Grants	$37,846