Finding 979576 (2023-002)

- Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-06-27

AI Summary

  • Core Issue: The Authority's federal aid policies are outdated due to management turnover and have not been revised since 2021.
  • Impacted Requirements: Noncompliance with 2 CFR 200, which mandates regular updates to federal aid policies.
  • Recommended Follow-Up: Review and update all federal aid policies annually to align with current management and regulatory changes.

Finding Text

Federal Aid Policies Finding 2023-002 Condition: The Authority’s management has completely turned over and been restructured. However, the Authority’s policies for federal aid approved in 2021 have not been revised to update for the current management structure. The policies have also not been updated for changes in the 2 CFR 200 that have occurred. Criteria: The 2 CFR 200 requires the adoption of federal aid policies and that they are to be updated and maintained in accordance with the federal regulations. These policies include the following along with the 2 CFR 200 reference. a. Cash Management Procedure –200.302(b)(6) and 200.305 b. Cost Allowability Procedures –200.302(b)(7) c. Conflicts of Interest Policy –200.318(c) d. Procurement Procedures –200.318(a) and 200.319(d) e. Method for Conducting Technical Evaluations of Proposals and Selecting Recipients –200.320(b)(2)(ii) f. Travel Policy –200.475(a) g. Procedures for Managing Equipment –200.313(d) h. Employee Benefits –200.431 Cause: The Authority has experienced a high turnover of employees since 2021 when the policies were adopted and have not been reviewed since their adoption. Effect: The Authority is noncompliant with 2 CFR 200. Directive: We direct the Authority review and update all federal aid policies and implement procedures to ensure that they are being reviewed at least once a year for changes in the Authority’s management structure or changes that occur in the 2 CFR 200. Management’s Response--Corrective Action Plan: Contact person is Rufus Adams, Executive Director, 275 East Wall Street, P.O. Box 837, Benton Harbor, Michigan 49023. Telephone (269) 927-2268. The Authority will update their federal policies to comply with 2 CFR 200 and will review all policies on an annual basis going forward.

Categories

Procurement, Suspension & Debarment Cash Management Equipment & Real Property Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
20.507 Federal Transit_formula Grants $111,664
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $58,064