Regional Transit Authority (A.R.T.)

EIN: 421133312

UEI: FKVEJ2FSNDD8

Data as of August 26, 2026

Regional Transit Authority (A.R.T.)8 audit years8 findings2 repeat
8
Audit Years
8
Total Findings
2
Repeat Findings

FY 2022-06-30

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on February 21, 2023. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by August 21, 2023 (1101 days ago).

What is a management decision? →
2022-003
Activities Allowed or Unallowed / Cost Allowability

SIGNIFICANT DEFICIENCY: 2022-003 In-Kind Procedures: Criteria ? The Authority is responsible for establishing and maintaining internal controls for recording in-kind revenues & expenses. Condition ? During the performance of our audit, it was determined that the review procedures for in-kind revenues and expenses were not adequate for identifying if improper amounts were recorded. Cause ? The Authority has not designed adequate procedures for reviewing in-kind revenues and expenses. Effect ? As a result of these inadequate procedures, there is a higher threat that errors or improper amounts could be recorded as in-kind revenues and expenses. Recommendation ?The Authority should review and revise procedures to ensure in-kind revenues and expenses are being properly recorded and reviewed. Client?s Response ? We will review our current procedures to ensure in-kind revenues and expenses are properly reviewed and recorded in the financial statements in the future.

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SIGNIFICANT DEFICIENCY: 2022-003 In-Kind Procedures: Criteria ? The Authority is responsible for establishing and maintaining internal controls for recording in-kind revenues & expenses. Condition ? During the performance of our audit, it was determined that the review procedures for in-kind revenues and expenses were not adequate for identifying if improper amounts were recorded. Cause ? The Authority has not designed adequate procedures for reviewing in-kind revenues and expenses. Effect ? As a result of these inadequate procedures, there is a higher threat that errors or improper amounts could be recorded as in-kind revenues and expenses. Recommendation ?The Authority should review and revise procedures to ensure in-kind revenues and expenses are being properly recorded and reviewed. Client?s Response ? We will review our current procedures to ensure in-kind revenues and expenses are properly reviewed and recorded in the financial statements in the future.

Corrective Action Plan

SIGNIFICANT DEFICIENCY: 2022-003 In-Kind Procedures: Criteria ? The Authority is responsible for establishing and maintaining internal controls for recording in-kind revenues & expenses. Condition ? During the performance of our audit, it was determined that the review procedures for in-kind revenues and expenses were not adequate for identifying if improper amounts were recorded. Cause ? The Authority has not designed adequate procedures for reviewing in-kind revenues and expenses. Effect ? As a result of these inadequate procedures, there is a higher threat that errors or improper amounts could be recorded as in-kind revenues and expenses. Recommendation ?The Authority should review and revise procedures to ensure in-kind revenues and expenses are being properly recorded and reviewed. Client?s Response ? We will review our current procedures to ensure in-kind revenues and expenses are properly reviewed and recorded in the financial statements in the future.

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles →

FY 2020-06-30

FAC accepted this audit on February 8, 2021 — management decision was due August 8, 2021.

2020-003
Activities Allowed or Unallowed / Cost Allowability
QUESTIONED COSTS

NON-COMPLIANCE: U.S. Department of Transportation Through Iowa Department of Transportation Formula Grants for Rural Areas and Tribal Transit Program: CFDA #20.509 Award No. 2020-010-00-FY20? Year Ended June 30, 2020 Prior Year Audit Finding Reference Number: N/A 2020-003 Criteria ? The CARES Act portion of the grant allows expenses in effect beginning 1/20/20. Condition ? During our review of reimbursed expenses, we identified expenses from 1/1/20 through 1/19/20 were inadvertently included in the grant award reimbursement request for the 3rd quarter. Cause ? Review procedures did not identify the unallowable expenses included in the reimbursement request. Effect ? As a result, the amount reimbursed included unallowable expenses. Questioned Costs - $105,317 Recommendation ? The Authority should implement procedures to ensure reimbursement requests include expenses from the proper time period. Client?s Response ? We have amended the request for reimbursement and adjusted the financial statements accordingly. We will also review reimbursement request procedures to ensure expenses included are for the proper time period. Conclusion - Response accepted.

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NON-COMPLIANCE: U.S. Department of Transportation Through Iowa Department of Transportation Formula Grants for Rural Areas and Tribal Transit Program: CFDA #20.509 Award No. 2020-010-00-FY20? Year Ended June 30, 2020 Prior Year Audit Finding Reference Number: N/A 2020-003 Criteria ? The CARES Act portion of the grant allows expenses in effect beginning 1/20/20. Condition ? During our review of reimbursed expenses, we identified expenses from 1/1/20 through 1/19/20 were inadvertently included in the grant award reimbursement request for the 3rd quarter. Cause ? Review procedures did not identify the unallowable expenses included in the reimbursement request. Effect ? As a result, the amount reimbursed included unallowable expenses. Questioned Costs - $105,317 Recommendation ? The Authority should implement procedures to ensure reimbursement requests include expenses from the proper time period. Client?s Response ? We have amended the request for reimbursement and adjusted the financial statements accordingly. We will also review reimbursement request procedures to ensure expenses included are for the proper time period. Conclusion - Response accepted.

Corrective Action Plan

NON-COMPLIANCE: U.S. Department of Transportation Through Iowa Department of Transportation Formula Grants for Rural Areas and Tribal Transit Program: CFDA #20.509 Award No. 2020-010-00-FY20 ? Year Ended June 30, 2020 Prior Year Audit Finding Reference Number: N/A 2020-003 Criteria ? The CARES Act portion of the grant allows expenses in effect beginning 1/20/20. Condition ? During our review of reimbursed expenses, we identified expenses from 1/1/20 through 1/19/20 were inadvertently included in the grant award reimbursement request for the 3rd quarter. Cause ? Review procedures did not identify the unallowable expenses included in the reimbursement request. Effect ? As a result, the amount reimbursed included unallowable expenses. Questioned Costs - $105,317 Recommendation ? The Authority should implement procedures to ensure reimbursement requests include expenses from the proper time period. Client?s Response ? We have amended the request for reimbursement and adjusted the financial statements accordingly. We will also review reimbursement request procedures to ensure expenses included are for the proper time period. Conclusion - Response accepted.

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles →
2020-004
Activities Allowed or Unallowed / Cost Allowability

NON-COMPLIANCE: U.S. Department of Transportation Through Iowa Department of Transportation Formula Grants for Rural Areas and Tribal Transit Program: CFDA #20.509 Award No. 2019-024-00-030-SFY20, 2020-010-00-FY20 ? Year Ended June 30, 2020 Prior Year Audit Finding Reference Number: N/A 2020-004 Criteria ? Only allowable expenses should be requested for reimbursement. Condition ? During our review of reimbursed payroll expenses, we identified four items out of forty where the payroll amounts were incorrectly calculated. Cause ? Review procedures did not identify the incorrect calculation of payroll amounts. Effect ? As a result, the amount reimbursed included $78 of unallowable expenses as found from our sample. Recommendation ? The Authority should implement procedures to ensure payroll items are properly calculated. Client?s Response ? We will review calculation procedures in the future to ensure all payroll items are calculated correctly. Conclusion - Response accepted.

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NON-COMPLIANCE: U.S. Department of Transportation Through Iowa Department of Transportation Formula Grants for Rural Areas and Tribal Transit Program: CFDA #20.509 Award No. 2019-024-00-030-SFY20, 2020-010-00-FY20 ? Year Ended June 30, 2020 Prior Year Audit Finding Reference Number: N/A 2020-004 Criteria ? Only allowable expenses should be requested for reimbursement. Condition ? During our review of reimbursed payroll expenses, we identified four items out of forty where the payroll amounts were incorrectly calculated. Cause ? Review procedures did not identify the incorrect calculation of payroll amounts. Effect ? As a result, the amount reimbursed included $78 of unallowable expenses as found from our sample. Recommendation ? The Authority should implement procedures to ensure payroll items are properly calculated. Client?s Response ? We will review calculation procedures in the future to ensure all payroll items are calculated correctly. Conclusion - Response accepted.

Corrective Action Plan

NON-COMPLIANCE: U.S. Department of Transportation Through Iowa Department of Transportation Formula Grants for Rural Areas and Tribal Transit Program: CFDA #20.509 Award No. 2019-024-00-030-SFY20, 2020-010-00-FY20 ? Year Ended June 30, 2020 Prior Year Audit Finding Reference Number: N/A 2020-004 Criteria ? Only allowable expenses should be requested for reimbursement. Condition ? During our review of reimbursed payroll expenses, we identified four items out of forty where the payroll amounts were incorrectly calculated. Cause ? Review procedures did not identify the incorrect calculation of payroll amounts. Effect ? As a result, the amount reimbursed included $78 of unallowable expenses as found from our sample. Recommendation ? The Authority should implement procedures to ensure payroll items are properly calculated. Client?s Response ? We will review calculation procedures in the future to ensure all payroll items are calculated correctly. Conclusion - Response accepted.

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles →
2020-005
Activities Allowed or Unallowed / Cost Allowability

SIGNIFICANT DEFICIENCY: U.S. Department of Transportation Through Iowa Department of Transportation Formula Grants for Rural Areas and Tribal Transit Program: CFDA #20.509 Award No. 2020-010-00-FY20 ? Year Ended June 30, 2020 Prior Year Audit Finding Reference Number: N/A 2020-005 Criteria ? The Authority is responsible for maintaining proper controls over reimbursement request for grant awards to ensure included expenses are related to the correct time period. Condition ? During our review of reimbursed expenses, we identified expenses from 1/1/20 through 1/19/20 were inadvertently included in the grant award reimbursement request. Cause ? Review procedures did not identify the incorrect timing of expense reimbursement. Effect ? As a result, there is potential for the wrong amount to be requested on a grant award reimbursement request form. Recommendation ? The Authority should implement procedures to ensure reimbursement requests include expenses from the proper time period. Client?s Response ? We will review reimbursement request procedures to ensure expenses included are for the proper time period. Conclusion - Response accepted.

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SIGNIFICANT DEFICIENCY: U.S. Department of Transportation Through Iowa Department of Transportation Formula Grants for Rural Areas and Tribal Transit Program: CFDA #20.509 Award No. 2020-010-00-FY20 ? Year Ended June 30, 2020 Prior Year Audit Finding Reference Number: N/A 2020-005 Criteria ? The Authority is responsible for maintaining proper controls over reimbursement request for grant awards to ensure included expenses are related to the correct time period. Condition ? During our review of reimbursed expenses, we identified expenses from 1/1/20 through 1/19/20 were inadvertently included in the grant award reimbursement request. Cause ? Review procedures did not identify the incorrect timing of expense reimbursement. Effect ? As a result, there is potential for the wrong amount to be requested on a grant award reimbursement request form. Recommendation ? The Authority should implement procedures to ensure reimbursement requests include expenses from the proper time period. Client?s Response ? We will review reimbursement request procedures to ensure expenses included are for the proper time period. Conclusion - Response accepted.

Corrective Action Plan

SIGNIFICANT DEFICIENCY: U.S. Department of Transportation Through Iowa Department of Transportation Formula Grants for Rural Areas and Tribal Transit Program: CFDA #20.509 Award No. 2020-010-00-FY20 ? Year Ended June 30, 2020 Prior Year Audit Finding Reference Number: N/A 2020-005 Criteria ? The Authority is responsible for maintaining proper controls over reimbursement request for grant awards to ensure included expenses are related to the correct time period. Condition ? During our review of reimbursed expenses, we identified expenses from 1/1/20 through 1/19/20 were inadvertently included in the grant award reimbursement request. Cause ? Review procedures did not identify the incorrect timing of expense reimbursement. Effect ? As a result, there is potential for the wrong amount to be requested on a grant award reimbursement request form. Recommendation ? The Authority should implement procedures to ensure reimbursement requests include expenses from the proper time period. Client?s Response ? We will review reimbursement request procedures to ensure expenses included are for the proper time period. Conclusion - Response accepted.

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles →
2020-006
Activities Allowed or Unallowed / Cost Allowability

SIGNIFICANT DEFICIENCY: U.S. Department of Transportation Through Iowa Department of Transportation Formula Grants for Rural Areas and Tribal Transit Program: CFDA #20.509 Award No. 2019-024-00-030-SFY20, 2020-010-00-FY20 ? Year Ended June 30, 2020 Prior Year Audit Finding Reference Number: N/A 2020-006 Criteria ? The Authority is responsible for maintaining proper control over the calculation of payroll items. Condition ? During our review of compliance requirements, we identified four items out of forty where payroll amounts were incorrectly calculated. Cause ? Review procedures did not identify the incorrect calculation of payroll amounts. Effect ? As a result, there is potential for the wrong amount to be paid. Recommendation ? The Authority should implement procedures to ensure payroll items are properly calculated. Client?s Response ? We will review calculation procedures in the future to ensure all payroll items are calculated correctly. Conclusion - Response accepted.

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Full finding narrative

SIGNIFICANT DEFICIENCY: U.S. Department of Transportation Through Iowa Department of Transportation Formula Grants for Rural Areas and Tribal Transit Program: CFDA #20.509 Award No. 2019-024-00-030-SFY20, 2020-010-00-FY20 ? Year Ended June 30, 2020 Prior Year Audit Finding Reference Number: N/A 2020-006 Criteria ? The Authority is responsible for maintaining proper control over the calculation of payroll items. Condition ? During our review of compliance requirements, we identified four items out of forty where payroll amounts were incorrectly calculated. Cause ? Review procedures did not identify the incorrect calculation of payroll amounts. Effect ? As a result, there is potential for the wrong amount to be paid. Recommendation ? The Authority should implement procedures to ensure payroll items are properly calculated. Client?s Response ? We will review calculation procedures in the future to ensure all payroll items are calculated correctly. Conclusion - Response accepted.

Corrective Action Plan

SIGNIFICANT DEFICIENCY: U.S. Department of Transportation Through Iowa Department of Transportation Formula Grants for Rural Areas and Tribal Transit Program: CFDA #20.509 Award No. 2019-024-00-030-SFY20, 2020-010-00-FY20 ? Year Ended June 30, 2020 Prior Year Audit Finding Reference Number: N/A 2020-006 Criteria ? The Authority is responsible for maintaining proper control over the calculation of payroll items. Condition ? During our review of compliance requirements, we identified four items out of forty where payroll amounts were incorrectly calculated. Cause ? Review procedures did not identify the incorrect calculation of payroll amounts. Effect ? As a result, there is potential for the wrong amount to be paid. Recommendation ? The Authority should implement procedures to ensure payroll items are properly calculated. Client?s Response ? We will review calculation procedures in the future to ensure all payroll items are calculated correctly. Conclusion - Response accepted.

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles →

FY 2019-06-30

FAC accepted this audit on January 30, 2020 — management decision was due July 30, 2020.

2019-003
Activities Allowed or Unallowed / Cost Allowability

SIGNIFICANT DEFICIENCY: U.S. Department of Transportation Through Iowa Department of Transportation Formula Grants for Rural Areas and Tribal Transit Program: CFDA #20.509 Award No. 2016-018-02-030-SFY19, 2016-031-01-030-17, 2016-031-030-16? Year Ended June 30, 2019 Prior Year Audit Finding Reference Number: N/A 2019-003 Criteria ? The Authority is responsible for maintaining proper control over programs to provide for allowable grant expenses. Condition ? During our review of internal control procedures over the Formula Grants for Rural Areas and Tribal Transit Program, we identified four instances out of sixty where the review process failed to provide proper approval of expenses. Cause ? There was no documentation that the amount to be paid was approved. Effect ? As a result, there is potential for the wrong amount to be paid without the correct approval. Recommendation ? The Authority should implement procedures to ensure expenses are properly approved. Client?s Response ? The Authority will review approval procedures in the future to ensure all expenses are reviewed and approved for the correct amount. Conclusion - Response accepted.

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SIGNIFICANT DEFICIENCY: U.S. Department of Transportation Through Iowa Department of Transportation Formula Grants for Rural Areas and Tribal Transit Program: CFDA #20.509 Award No. 2016-018-02-030-SFY19, 2016-031-01-030-17, 2016-031-030-16? Year Ended June 30, 2019 Prior Year Audit Finding Reference Number: N/A 2019-003 Criteria ? The Authority is responsible for maintaining proper control over programs to provide for allowable grant expenses. Condition ? During our review of internal control procedures over the Formula Grants for Rural Areas and Tribal Transit Program, we identified four instances out of sixty where the review process failed to provide proper approval of expenses. Cause ? There was no documentation that the amount to be paid was approved. Effect ? As a result, there is potential for the wrong amount to be paid without the correct approval. Recommendation ? The Authority should implement procedures to ensure expenses are properly approved. Client?s Response ? The Authority will review approval procedures in the future to ensure all expenses are reviewed and approved for the correct amount. Conclusion - Response accepted.

Corrective Action Plan

SIGNIFICANT DEFICIENCY: U.S. Department of Transportation Through Iowa Department of Transportation Formula Grants for Rural Areas and Tribal Transit Program: CFDA #20.509 Award No. 2016-018-02-030-SFY19, 2016-031-01-030-17, 2016-031-030-16? Year Ended June 30, 2019 Prior Year Audit Finding Reference Number: N/A 2019-003 Criteria ? The Authority is responsible for maintaining proper control over programs to provide for allowable grant expenses. Condition ? During our review of internal control procedures over the Formula Grants for Rural Areas and Tribal Transit Program, we identified four instances out of sixty where the review process failed to provide proper approval of expenses. Cause ? There was no documentation that the amount to be paid was approved. Effect ? As a result, there is potential for the wrong amount to be paid without the correct approval. Recommendation ? The Authority should implement procedures to ensure expenses are properly approved. Client?s Response ? The Authority will review approval procedures in the future to ensure all expenses are reviewed and approved for the correct amount. Conclusion - Response accepted.

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles →
2019-004
Activities Allowed or Unallowed / Cost Allowability
MATERIAL WEAKNESSREPEAT

MATERIAL WEAKNESS: U.S. Department of Transportation Through Iowa Department of Transportation Formula Grants for Rural Areas and Tribal Transit Program: CFDA #20.509 Award No. 2016-018-02-030-SFY19, 2016-031-01-030-17, 2016-031-030-16? Year Ended June 30, 2019 Prior Year Audit Finding Reference Number: 2018-001 2019-004 Criteria ? Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody, and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and, therefore, maximizes the accuracy of the Authority?s financial statements. Condition ? During our review of internal control structure, the existing procedures are evaluated in order to determine that incompatible duties, from a control standpoint, are not performed by the same employee. While performing our review, it was determined that there were incompatible duties in payroll areas, with all activities related to those processes being performed by the same employee. Cause ? The Authority has a limited number of employees and procedures have not been designed to adequately segregate duties or provide compensating controls through additional oversight of transactions and processes. Effect ? As a result of this risk, there is a higher threat that errors or irregularities could occur and not be detected within a timely period. Internal controls that are in place could be averted, overridden, or not consistently implemented. Recommendation ? We realize with a limited number of personnel, segregation of duties is difficult. However, the Authority should review the operating procedures of the office and information provided to the Board to obtain the maximum internal control possible under the circumstance. Client?s Response ? We will investigate available alternatives to segregate duties where possible and will establish review procedures where complete segregation is not feasible. Conclusion - Response accepted.

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MATERIAL WEAKNESS: U.S. Department of Transportation Through Iowa Department of Transportation Formula Grants for Rural Areas and Tribal Transit Program: CFDA #20.509 Award No. 2016-018-02-030-SFY19, 2016-031-01-030-17, 2016-031-030-16? Year Ended June 30, 2019 Prior Year Audit Finding Reference Number: 2018-001 2019-004 Criteria ? Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody, and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and, therefore, maximizes the accuracy of the Authority?s financial statements. Condition ? During our review of internal control structure, the existing procedures are evaluated in order to determine that incompatible duties, from a control standpoint, are not performed by the same employee. While performing our review, it was determined that there were incompatible duties in payroll areas, with all activities related to those processes being performed by the same employee. Cause ? The Authority has a limited number of employees and procedures have not been designed to adequately segregate duties or provide compensating controls through additional oversight of transactions and processes. Effect ? As a result of this risk, there is a higher threat that errors or irregularities could occur and not be detected within a timely period. Internal controls that are in place could be averted, overridden, or not consistently implemented. Recommendation ? We realize with a limited number of personnel, segregation of duties is difficult. However, the Authority should review the operating procedures of the office and information provided to the Board to obtain the maximum internal control possible under the circumstance. Client?s Response ? We will investigate available alternatives to segregate duties where possible and will establish review procedures where complete segregation is not feasible. Conclusion - Response accepted.

Corrective Action Plan

MATERIAL WEAKNESS: U.S. Department of Transportation Through Iowa Department of Transportation Formula Grants for Rural Areas and Tribal Transit Program: CFDA #20.509 Award No. 2016-018-02-030-SFY19, 2016-031-01-030-17, 2016-031-030-16? Year Ended June 30, 2019 Prior Year Audit Finding Reference Number: 2018-001 2019-004 Criteria ? Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody, and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and, therefore, maximizes the accuracy of the Authority?s financial statements. Condition ? During our review of internal control structure, the existing procedures are evaluated in order to determine that incompatible duties, from a control standpoint, are not performed by the same employee. While performing our review, it was determined that there were incompatible duties in payroll areas, with all activities related to those processes being performed by the same employee. Cause ? The Authority has a limited number of employees and procedures have not been designed to adequately segregate duties or provide compensating controls through additional oversight of transactions and processes. Effect ? As a result of this risk, there is a higher threat that errors or irregularities could occur and not be detected within a timely period. Internal controls that are in place could be averted, overridden, or not consistently implemented. Recommendation ? We realize with a limited number of personnel, segregation of duties is difficult. However, the Authority should review the operating procedures of the office and information provided to the Board to obtain the maximum internal control possible under the circumstance. Client?s Response ? We will investigate available alternatives to segregate duties where possible and will establish review procedures where complete segregation is not feasible. Conclusion - Response accepted.

Prior Finding References

2018-001

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles →

FY 2018-06-30

FAC accepted this audit on January 22, 2019 — management decision was due July 22, 2019.

2018-001
Other
MATERIAL WEAKNESSREPEAT

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2015-001

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