FAC Explorer

Finding 44305 (2022-003)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-02-13
Audit: 44901
Organization: Southern California Regional Rail Authority/metrolink (CA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: SCRRA overstated federal expenditures by $3,098,000 on the SEFA due to inadequate internal controls.
  • Impacted Requirements: Compliance with Title 2 CFR 200.502, which mandates accurate reporting of federal expenditures and activities related to federal awards.
  • Recommended Follow-Up: Enhance internal controls to ensure accurate reporting of federal expenditures on the SEFA.

Finding Text

Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.

Corrective Action Plan

Finding 2022-003 Federal Transit Cluster - SEFA Management?s or Department?s Response: Management agrees. Views of Responsible Officials and Corrective Action: SCRRA will document the process to review the SEFA from prior year. Compare the SEFA to the final Single Audit Report to ensure the ending balances tie back to the Single Audit Report, before starting the current year?s SEFA. Name of Responsible Person: Thelma Bloes Implementation Date: June 30, 2023

Categories

Reporting Matching / Level of Effort / Earmarking Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management Material Weakness Program Income

Other Findings in this Audit

  • 44304 2022-002
    Significant Deficiency Repeat
  • 44306 2022-002
    Significant Deficiency Repeat
  • 44307 2022-003
    Material Weakness
  • 44308 2022-002
    Significant Deficiency Repeat
  • 44309 2022-003
    Material Weakness
  • 44310 2022-002
    Significant Deficiency Repeat
  • 44311 2022-003
    Material Weakness
  • 44312 2022-002
    Significant Deficiency Repeat
  • 44313 2022-003
    Material Weakness
  • 44314 2022-002
    Significant Deficiency Repeat
  • 44315 2022-003
    Material Weakness
  • 44316 2022-002
    Significant Deficiency Repeat
  • 44317 2022-003
    Material Weakness
  • 44318 2022-002
    Significant Deficiency Repeat
  • 44319 2022-003
    Material Weakness
  • 44320 2022-002
    Significant Deficiency Repeat
  • 44321 2022-003
    Material Weakness
  • 44322 2022-002
    Significant Deficiency Repeat
  • 44323 2022-003
    Material Weakness
  • 44324 2022-002
    Significant Deficiency Repeat
  • 44325 2022-003
    Material Weakness
  • 44326 2022-002
    Significant Deficiency Repeat
  • 44327 2022-003
    Material Weakness
  • 44328 2022-002
    Significant Deficiency Repeat
  • 44329 2022-003
    Material Weakness
  • 44330 2022-002
    Significant Deficiency Repeat
  • 44331 2022-003
    Material Weakness
  • 44332 2022-002
    Significant Deficiency Repeat
  • 44333 2022-003
    Material Weakness
  • 44334 2022-002
    Significant Deficiency Repeat
  • 44335 2022-003
    Material Weakness
  • 44336 2022-002
    Significant Deficiency Repeat
  • 44337 2022-003
    Material Weakness
  • 44338 2022-002
    Significant Deficiency Repeat
  • 44339 2022-003
    Material Weakness
  • 44340 2022-002
    Significant Deficiency Repeat
  • 44341 2022-003
    Material Weakness
  • 44342 2022-002
    Significant Deficiency Repeat
  • 44343 2022-003
    Material Weakness
  • 44344 2022-002
    Significant Deficiency Repeat
  • 44345 2022-003
    Material Weakness
  • 44346 2022-002
    Significant Deficiency Repeat
  • 44347 2022-003
    Material Weakness
  • 44348 2022-002
    Significant Deficiency Repeat
  • 44349 2022-003
    Material Weakness
  • 44350 2022-002
    Significant Deficiency Repeat
  • 44351 2022-003
    Material Weakness
  • 44352 2022-002
    Significant Deficiency Repeat
  • 44353 2022-003
    Material Weakness
  • 44354 2022-002
    Significant Deficiency Repeat
  • 44360 2022-003
    Material Weakness
  • 44361 2022-002
    Significant Deficiency Repeat
  • 44362 2022-003
    Material Weakness
  • 44363 2022-002
    Significant Deficiency Repeat
  • 44364 2022-003
    Material Weakness
  • 44365 2022-002
    Significant Deficiency
  • 44366 2022-002
    Significant Deficiency
  • 44367 2022-002
    Significant Deficiency
  • 620746 2022-002
    Significant Deficiency Repeat
  • 620747 2022-003
    Material Weakness
  • 620748 2022-002
    Significant Deficiency Repeat
  • 620749 2022-003
    Material Weakness
  • 620750 2022-002
    Significant Deficiency Repeat
  • 620751 2022-003
    Material Weakness
  • 620752 2022-002
    Significant Deficiency Repeat
  • 620753 2022-003
    Material Weakness
  • 620754 2022-002
    Significant Deficiency Repeat
  • 620755 2022-003
    Material Weakness
  • 620756 2022-002
    Significant Deficiency Repeat
  • 620757 2022-003
    Material Weakness
  • 620758 2022-002
    Significant Deficiency Repeat
  • 620759 2022-003
    Material Weakness
  • 620760 2022-002
    Significant Deficiency Repeat
  • 620761 2022-003
    Material Weakness
  • 620762 2022-002
    Significant Deficiency Repeat
  • 620763 2022-003
    Material Weakness
  • 620764 2022-002
    Significant Deficiency Repeat
  • 620765 2022-003
    Material Weakness
  • 620766 2022-002
    Significant Deficiency Repeat
  • 620767 2022-003
    Material Weakness
  • 620768 2022-002
    Significant Deficiency Repeat
  • 620769 2022-003
    Material Weakness
  • 620770 2022-002
    Significant Deficiency Repeat
  • 620771 2022-003
    Material Weakness
  • 620772 2022-002
    Significant Deficiency Repeat
  • 620773 2022-003
    Material Weakness
  • 620774 2022-002
    Significant Deficiency Repeat
  • 620775 2022-003
    Material Weakness
  • 620776 2022-002
    Significant Deficiency Repeat
  • 620777 2022-003
    Material Weakness
  • 620778 2022-002
    Significant Deficiency Repeat
  • 620779 2022-003
    Material Weakness
  • 620780 2022-002
    Significant Deficiency Repeat
  • 620781 2022-003
    Material Weakness
  • 620782 2022-002
    Significant Deficiency Repeat
  • 620783 2022-003
    Material Weakness
  • 620784 2022-002
    Significant Deficiency Repeat
  • 620785 2022-003
    Material Weakness
  • 620786 2022-002
    Significant Deficiency Repeat
  • 620787 2022-003
    Material Weakness
  • 620788 2022-002
    Significant Deficiency Repeat
  • 620789 2022-003
    Material Weakness
  • 620790 2022-002
    Significant Deficiency Repeat
  • 620791 2022-003
    Material Weakness
  • 620792 2022-002
    Significant Deficiency Repeat
  • 620793 2022-003
    Material Weakness
  • 620794 2022-002
    Significant Deficiency Repeat
  • 620795 2022-003
    Material Weakness
  • 620796 2022-002
    Significant Deficiency Repeat
  • 620802 2022-003
    Material Weakness
  • 620803 2022-002
    Significant Deficiency Repeat
  • 620804 2022-003
    Material Weakness
  • 620805 2022-002
    Significant Deficiency Repeat
  • 620806 2022-003
    Material Weakness
  • 620807 2022-002
    Significant Deficiency
  • 620808 2022-002
    Significant Deficiency
  • 620809 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.507 Covid-19 Cares Act Federal Transit_formula Grants $21.84M
20.525 State of Good Repair Grants Program $528,002
20.321 Railroad Safety Technology Grants $525,000
20.500 Federal Transit_capital Investment Grants $44,946
20.301 Railroad Safety $13,935
20.325 Consolidated Rail Infrastructure and Safety Improvements $5,211
20.507 Federal Transit_formula Grants $-325