March 25, 2025
CORRECTIVE ACTION PLAN
Pursuant to federal regulations, Uniform Administrative Requirements Section 200.511, the following are the findings, as noted in the Barry County Transit’s Single Audit report for the year ended September 30, 2024, and corrective actions to be completed.
Finding: 2024-001 – Internal Control Over Federal Awards – Allowability of Costs and Allowable Activities
Auditor Description of Condition and Effect: Costs must meet certain general criteria to be allowable under federal awards. One criterion is that the costs be adequately documented.
Several of the payroll expenses that were selected for testing did not have employee timecards with evidence that they were reviewed and authorized for payment by their immediate supervisor.
As a result of this condition, the Transit does not have adequate documentation demonstrating that an individual with appropriate knowledge of the transaction has reviewed that the transaction is allowable, free of error, and necessary and reasonable for the performance of the federal award.
Auditor Recommendation: We recommend that the Transit ensures policies and procedures are followed to provide documented proof of review by management over key transactions such as payroll.
Corrective Action: We concur with the finding and management will work to show documented review over payroll transactions.
Responsible Person: Mary Bassett – Director
Signature
Anticipated Completion Date: September 30, 2025