Finding 526792 (2023-003)

Significant Deficiency Repeat Finding

Requirement

Questioned Costs

Year

2023

Accepted

2025-03-12

Audit: 345835

Organization: Birmingham Jefferson County Transit Authority (AL)

Auditor: Warren Averett LLC

AI Summary

Core Issue: The Authority missed the deadline to submit the data collection form and audit reporting package to the Federal Audit Clearinghouse.
Impacted Requirements: This is a repeat finding, violating 2 CFR section 200.512, which mandates timely submissions.
Recommended Follow-up: Implement measures to ensure future submissions are timely and accurate to avoid high-risk classification.

Finding Text

Finding 2023-003 – Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance)-(Repeat Finding) 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, 2023. Cause: The Authority did not meet the submission date of June 30, 2024 for the September 30, 2023 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

In 2023, the Authority continued to face challenges with staffing shortages and turnover in key financial positions. These challenges resulted in delays in performing and completing accounting functions and issuing financial statements in a timely manner. However, Finance Department is now almost fully staffed, and our accounting professionals possess the talent and experience to ensure accounting functions and processes are performed and completed in a timely matter. We now have the following accounting positions filled — Accounting Manager, Accounting Supervisor, and Senior Accountant. Furthermore, we have advertised and expect to soon fill the position of Controller. Filling these positions and elevating the talent level have resulted in immediate enhancements in financial reporting and will enable the Authority to submit the reporting package to the Federal Audit Clearinghouse by the prescribed due date.

Other Findings in this Audit

526793 2023-003

Significant Deficiency Repeat
526794 2023-003

Significant Deficiency Repeat
526795 2023-003

Significant Deficiency Repeat
1103234 2023-003

Significant Deficiency Repeat
1103235 2023-003

Significant Deficiency Repeat
1103236 2023-003

Significant Deficiency Repeat
1103237 2023-003

Significant Deficiency Repeat

Programs in Audit

ALN	Program Name	Expenditures
20.507	Federal Transit Formula Grants	$13.27M
20.526	Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs	$322,367
20.500	Federal Transit Capital Investment Grants	$9,104