Finding 554042 (2024-003)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2024
Accepted
2025-04-04

AI Summary

  • Core Issue: There is a material weakness in internal controls due to insufficient documentation of management review for federal expenditures.
  • Impacted Requirements: Compliance with allowable activities and costs for federal program 20.509 is not being met.
  • Recommended Follow-Up: Implement independent review and approval procedures for all accounts payable, payroll, and journal entries related to federal funds.

Finding Text

Material Weakness – 2024-003 - Supporting Documentation and Review and Approval for Federal Expenditures (Repeat Finding) Finding Type: Material weakness in internal controls over compliance and immaterial non-compliance. Federal Program: 20.509 Formula Grants for Rural Transits. Compliance Requirements: Allowable Activities and Allowable Costs. Questioned Costs: There were no questioned costs as a result of this finding. Criteria: Management is responsible for verifying that federal expenditures are in compliance with allowable costs and allowable activities. Condition/Finding: The Authority had instances during accounts payable, payroll, and journal entry testing where documentation of expenditures lacked evidence of review by senior management. Cause: Lack of documentation of review and approval by management of certain elements of accounts payable, payroll, and journal entries. Effect: Increased risk of errors or misstatements in financial records related to federal funds. Recommendation: The Authority should implement procedures for the independent review and approval by management over all accounts payable, payroll, and journal entries related to federal funds. View of Responsible Officials (Corrective Action): [See Corrective Action Plan]

Categories

Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

  • 554040 2024-003
    Material Weakness Repeat
  • 554041 2024-003
    Material Weakness Repeat
  • 554043 2024-003
    Material Weakness Repeat
  • 554044 2024-003
    Material Weakness Repeat
  • 554045 2024-003
    Material Weakness Repeat
  • 554046 2024-003
    Material Weakness Repeat
  • 554047 2024-003
    Material Weakness Repeat
  • 1130482 2024-003
    Material Weakness Repeat
  • 1130483 2024-003
    Material Weakness Repeat
  • 1130484 2024-003
    Material Weakness Repeat
  • 1130485 2024-003
    Material Weakness Repeat
  • 1130486 2024-003
    Material Weakness Repeat
  • 1130487 2024-003
    Material Weakness Repeat
  • 1130488 2024-003
    Material Weakness Repeat
  • 1130489 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $237,960
20.516 Job Access and Reverse Commute Program $19,601
20.509 Formula Grants for Rural Areas and Tribal Transit Program $1,937