Yuma County Intergovernmental Public Transportation AuthorityLocal Government

Finding Number: 2024-001 Repeat Finding: No Program Name/Assistance Listing Title: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Agency: Arizona Department of Transportation Federal Award Number: GRT-22-0008862-T Pass-Through Agency: Arizona Department of Transportation Questioned Costs: N/A Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Other Criteria Management is responsible for establishing and maintaining internal controls over its accounting records. Further, in accordance with 2 CFR 200.510, the entity is responsible for the design and implementation of controls over the preparation of the Schedule of Expenditures of Federal Awards (SEFA) each fiscal year. Additionally, 2 CFR 200.303 requires the entity to establish and maintain internal control over the federal awards that provides reasonable assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Condition YCIPTA was awarded a match for the purchase of a new bus. YCIPTA did not follow federal regulations regarding federal revenue transactions to ensure all activities were properly recorded and processed. Cause YCIPTA has not implemented sufficient controls over accounting transactions. Effect YCIPTA was not in compliance with federal regulations and guidelines. The transaction was unique and not part of the normal federal program operations. It was not known that the transaction was subject to Single Audit. Audit adjustments were required to properly reflect the activity. Context YCIPTA received a federal match for the purchase of a new bus. The following errors were noted in the recording of the bus:  A bus valued at $120,488 was not recorded in the general ledger.  The corresponding depreciation expense (and accumulated depreciation) of $20,081 was not recorded in the general ledger.  Capital outlay of $12,753 was recorded in error in the general ledger  Federal revenue of $107,735 for the match was not recorded in the general ledger or on the SEFA for the fiscal year. The sample was not intended to be, and was not, a statistically valid sample. Recommendation YCIPTA should improve internal controls and adhere to federal regulations. All applicable transactions and activity should be included in the SEFA for the fiscal year in which the expenditures occurred. Views of Responsible Officials See Corrective Action Plan.

Finding Number: 2024-002 Repeat Finding: Yes – 2023-001, 2022-001 Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Federal Transit Cluster 20.507 AZ-90-X132, AZ-90-X-143, AZ-2018-003-00, AZ-2019-010-00, AZ-2019-035, AZ-2019-036 AZ-2023-001-00 N/A Formula Grants for Rural Areas and Trial Transit Program 20.509 CA-2022-231-00, GRT-22-0008862-T N/A Federal Agency: Department of Transportation Pass-Through Agencies: Arizona Department of Transportation, Quechan Indian Tribe Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Procurement, Suspension, and Debarment Criteria Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR §§200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200. The Board adopted a Policies and Procedures Manual that requires formal bid procedures for purchases over $100,000. Condition The Authority did not follow its Board adopted Policies and Procedures Manual or federal regulations. Cause YCIPTA was operating under an expired contract and did not follow Board-adopted policies. Effect YCIPTA was not in compliance with the Board adopted Policies and Procedures Manual and federal regulations. Context For one purchase in excess of the federal procurement threshold of $250,000, YCIPTA did not perform a sealed bid of proposal. The sample was not intended to be, and was not, a statistically valid sample. Recommendation YCIPTA should adhere to its Board adopted Policies and Procedures Manual. When purchases are expected to be in excess of $100,000, formal procurement methods should be used to ensure the best pricing possible. Views Of Responsible Officials See Corrective Action Plan.

Findings and Questioned Costs Related to Federal Awards Finding Number: 2023-001 Repeat Finding: Yes - 2022-001, 2021-001 Program Names/ Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Federal Transit Cluster 20.507 AZ-90-X127, AZ-90-X132, AZ-90-X-143, AZ-2018-003-00, AZ-2019-010-00, AZ-2019-035, AZ-2023-001-00 N/A Formula Grants for Rural Areas and Tribal Transit Program 20.509 CA-2021-028-00, CA-2022-226-00, CA-2022-231-00, GRT-22-0008862-T N/A Federal Agency: Department of Transportation Pass-Through Agency: Arizona Department of Transportation and Quechan Indian Tribe Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Procurement, Suspension, and Debarment CRITERIA Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR §§200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200. The Board adopted a Policies and Procedures Manual that requires the collection of three quotes for purchases of at least $3,000 but less than $100,000 and formal bid procedures for purchases over $100,000. Condition The Authority did not follow its Board adopted Policies and Procedures Manual or federal regulations. Cause YCIPTA was operating under an expired contract and did not follow Board-adopted policies. Effect YCIPTA was not in compliance with the Board adopted Policies and Procedures Manual and federal regulations. Context During our review of procurement, the following were noted:  For one purchase in excess of the federal procurement threshold of $250,000, YCIPTA did not perform a sealed bid or proposal.  For two purchases in the YCIPTA’s quote range, the YCIPTA did not obtain or maintain quotes. The sample was not intended to be, and was not, a statistically valid sample. Recommendation YCIPTA should adhere to its Board adopted Policies and Procedures Manual. When purchases are expected to be in excess of $100,000, formal procurement methods should be used to ensure the best pricing possible. Views of Responsible Officials See Corrective Action Plan.

FINDINGS AND QUESTIONED COSTS RELATED TO FEDERAL AWARDS Finding Number: 2022-001 Repeat Finding: Yes, 2021-001 Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Federal Transit Cluster 20.507 AZ-90-X127 AZ-90-X132 AZ-90-X143 AZ-2018-003-00, AZ-2019-035, AZ-2020-030-00 AZ-2021-039 N/A Formula Grants For Rural Areas and Tribal Transit Program 20.509 GRT-20-0007- 926-T, CA-2019- 159-00, CA- 2021-028-00, CA-2021-031-00 N/A Federal Agency: Department of Transportation Pass-Through Agency: Arizona Department of Transportation and Quechan Indian Tribe Type of Finding: Noncompliance, Material Weakness Compliance Requirements: Procurement, Suspension, and Debarment CRITERIA Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR ??200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200. The Board adopted a Policies and Procedures Manual that requires the collection of three quotes for purchases of at least $3,000 but less than $100,000 and formal bid procedures for purchases over $100,000. CONDITION YCIPTA did not follow its Board adopted Policies and Procedures Manual or federal regulations. CAUSE YCIPTA was operating under an expired contract and did not follow Board-adopted policies. EFFECT YCIPTA was not in compliance with the Board adopted Policies and Procedures Manual and federal regulations. CONTEXT During our review of procurement, the following were noted: ? For one purchase in excess of the federal procurement threshold of $250,000, YCIPTA did not perform a sealed bid or proposal. ? For one purchase in YCIPTA?s quote range, YCIPTA did not obtain or maintain quotes. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION YCIPTA should adhere to its Board adopted Policies and Procedures Manual. When purchases are expected to be in excess of $100,000, formal procurement methods should be used to ensure the best pricing possible. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.

FINDINGS AND QUESTIONED COSTS RELATED TO FEDERAL AWARDS Finding Number: 2021-001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Federal Transit Cluster 20.507 AZ-90-X127 AZ-90-X132 AZ-2018-003-00, AZ-2019-036, AZ-2020-030-00 N/A Formula Grants For Rural Areas and Tribal Transit Program 20.509 GRT-18-0007- 112-T, GRT-20- 0007-926-T, CA-2019-159-00 and CA-2020- 071-01 N/A Federal Agency: Department of Transportation Pass-Through Agency: Arizona Department of Transportation and Quechan Indian Tribe Type of Finding: Noncompliance, Material Weakness Compliance Requirements: Procurement, Suspension, and Debarment CRITERIA Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR ??200.318 through 200.327. They must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200. The Board adopted a Policies and Procedures Manual that requires the collection of three quotes for purchases of at least $3,000 but less than $100,000 and formal bid procedures for purchases over $100,000. Additionally, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Finally, real property must be acquired, managed, and used in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, 42 U.S.C. ??4601- 4655 and 49 CFR part 24. CONDITION YCIPTA did not follow its Board adopted Policies and Procedures Manual or federal regulations. CAUSE YCIPTA was operating under expired contracts as well as lack of documentation due to expedited need for contracts due to the COVID-19 pandemic. EFFECT During our review of procurement, the following were noted: ? For one purchase in excess of the federal procurement threshold of $250,000, YCIPTA did not perform a sealed bid or proposal. ? For two purchases in excess of YCIPTA?s formal bid range but under the federal procurement threshold of $250,000, YCIPTA did not perform a sealed bid or proposal. ? For three purchases in YCIPTA?s quote range, YCIPTA did not obtain or maintain quotes. ? For all covered transactions reviewed, YCIPTA did not perform a suspension and debarment check. ? For one purchase for land, YCIPTA did not obtain an independent appraisal by a certified appraiser as well as a review of the initial appraisal. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION YCIPTA should adhere to its Board adopted Policies and Procedures Manual and the Suspension and Debarment requirements under 2 CFR ?180.220. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.

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