EIN: 843240474
UEI: XBJBRJ9YNLB3
Condition: The Organization purchased property and services without implementing procedures that comply with procurement standards set out at 2 CFR sections 200.318 through 200.326. 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 sections 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. Cause: The Organization did not 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. Effect: The Organization did not comply with procurement requirements identified in 2 CFR part 200. Context: A sample of 5 purchases totaling $37,971 was selected for audit from a population of 21 purchases totaling $284,550. The test found that five purchases did not adhere to the Organization's documented procurement procedures and 1 purchase that also did not include competitive bidding. Recommendation: We recommend that the Organization use their own documented procurement procedures that comply with procurement standards set out at 2 CFR sections 200.318 through 200.326. Views of Responsible Officials: Management agrees with the finding.
The Organization plans to use their procurement policy to ensure they are in compliance with the procurement standards.
Condition: During our audit, we noted errors related to calculations of federal expenditures on the Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance requires proper reporting of federal expenditures. Cause: Management did not have the information needed to prepare the Schedule of Expenditures of Federal Awards. Effect: As a result, federal expenditures were overstated by $137,301 on the Schedule of Expenditures of Federal Awards. Context: During our audit procedures, we identified one item on the Schedule of Expenditures of Federal Awards that did not include federal expenditures. Recommendation: We recommend that the Organization implement a review process to ensure correct reporting on the Schedule of Expenditures of Federal Awards prior to the audit, including a reconciliation between the Schedule of Expenditures of Federal Awards and the accounting system. We also recommend updating the federal grant tracking spreadsheet to track expenditures by fiscal year. Views of responsible officials: Management agrees with the finding.
2022-002 Material Weakness in Internal Controls over Compliance Recommendation: We recommend that the Organization implement a review process to ensure correct reporting on the Schedule of Expenditures of Federal Awards prior to the audit, including a reconciliation between the Schedule of Expenditures of Federal Awards and the accounting system. We also recommend updating the federal grant tracking spreadsheet to track expenditures by fiscal year. Planned Action: Community Transit of Watertown-Sisseton, Inc. will correct this deficiency in the 2023 fiscal year by reviewing the schedule of expenditures of Federal awards and the accounting system prior to the audit. CTWSI will update the federal grant tracking spreadsheet as soon as grant agreements become available which will co-inside with the fiscal year awarded.
2021-002
2021-002 Material Weakness in Internal Controls over Compliance Condition: During our audit, we noted errors related to calculations of federal expenditures on the Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance requires proper reporting of federal expenditures. Cause: Management did not have the information needed to prepare the Schedule of Expenditures of Federal Awards. Effect: As a result, federal expenditures were understated by $254,049 on the Schedule of Expenditures of Federal Awards. Recommendation: We recommend that the Organization implement a review process to ensure correct reporting on the Schedule of Expenditures of Federal Awards prior to the audit, including a reconciliation between the Schedule of Expenditures of Federal Awards and the accounting system. We also recommend updating the federal grant tracking spreadsheet to track expenditures by fiscal year.
U.S. Department of Transportation Passed-Through South Dakota Department of Transportation Community Transit of Watertown-Sisseton, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2021. Name and address of independent public accounting firm: Abdo, LLP 5201 Eden Avenue, Suite 250 Edina, MN 55436 Audit period: October 01, 2020 - September 30, 2021 The findings from the September 30, 2021 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. U.S. Department of Transportation Formula Grants for Rural Areas and Tribal Transit Program - ALN 20.509 2021-001 Material Weakness in Internal Controls over Compliance Recommendation: We recommend the Organization review and update its year-end processes to ensure all accounts are current at year end. Planned Action: Community Transit of Watertown-Sisseton, Inc. will correct this deficiency in the 2022 fiscal year by implementing a review process to ensure correct reporting, any grant payments from SDDOT will be reconciled on a monthly basis from our grant tracking spreadsheet with our QuickBooks reports that are prepared by our contracted bookkeeping service. 2021-002 Material Weakness in Internal Controls over Compliance Recommendation: We recommend that the Organization implement a review process to ensure correct reporting on the Schedule of Expenditures of Federal Awards prior to the audit, including a reconciliation between the Schedule of Expenditures of Federal Awards and the accounting system. We also recommend updating the federal grant tracking spreadsheet to track expenditures by fiscal year. Planned Action: Community Transit of Watertown-Sisseton, Inc. will correct this deficiency in the 2022 fiscal year by reviewing the schedule of expenditures of Federal awards and the accounting system prior to the audit. CTWSI will up- date the federal grant tracking spreadsheet as soon as grant agreements become available which will co-inside with the fiscal year awarded. The Organization strives to remain compliant with Uniform Guidance in all respects to present both accurate and transparent records. If the South Dakota Department of Transportation has questions regarding this plan, please call Terry Hoffman or Kathy Holman, Co-Executive Directors, at 605-882-5287. Sincerely, Kathy Holman Co-Executive Director
2020-001
2020-001 Material Weakness in Internal Controls over Compliance Condition ? During our audit, we noted a significant number of errors on the SEFA related to calculations of federal expenditures. Criteria ? Uniform Guidance requires proper reporting of federal expenditures. Cause ? During the first year after the Organization?s consolidation, management did not have the information needed to prepare the Schedule of Expenditures of Federal Awards. Effect ? As a result, there were overstatements of federal expenditures under five CFDA numbers and three awards were excluded from the Schedule of Expenditures of Federal Awards. Recommendation ? We recommend that the Organization implement a review process to ensure correct reporting on the Schedule of Expenditures of Federal Awards prior to the audit.
Community Transit of Watertown-Sisseton, Inc. will correct this deficiency in the 2021 fiscal year. After audit field work was done, Community Transit of Watertown/Sisseton, Inc. immediately developed a spreadsheet to track all federal grants. Grant award amounts along with grant agreement numbers, CFDA numbers, and grant dates are documented on the spreadsheet. Amounts used and what is left of the grant are also documented on the spreadsheet.
2020-002 Significant Deficiency in Internal Controls over Compliance Condition ? During our audit, we Noted a $18,228 payment from South Dakota Department of Transportation where the purpose and program could not be identified. Criteria ? Uniform Guidance requires proper reporting of federal expenditures. Cause ? The Organization received the payment but could not identify which agreement or expenditures the payment related to. Effect ? As a result, the payment could not be supported by the Organization?s expenditures and the Organization could not identify where it should be included on the SEFA. Recommendation ? We recommend that the Organization implement control procedures to review all federal funding received to ensure they can be tied back to an agreement and a request for reimbursement, if applicable. If funds are received that cannot be tied back to an agreement, we recommend that the Organization contact the funder to identify the reason for the payment.
Community Transit of Watertown-Sisseton, Inc. will correct this deficiency in the 2021 fiscal year. We have developed a grant reimbursement form that will show the grant number, CFDA number, and amount requested. We will use this document each time we are requesting a grant payment from South Dakota Department of Transportation.
2020-003 Significant Deficiency in Internal Controls over Compliance Condition ? During our audit, we noted a significant number of expenditures missing authorization signatures. Criteria ? Uniform Guidance requires proper reporting of federal expenditures. Cause ? Due to it being the Organization?s first year of consolidation, an approval process wasn?t fully implemented and approvals were often being verbally communicated rather than written on the invoices. Effect ? As a result, there is a potential for unauthorized purchases that do not conform with federal or grant-specific requirements. Recommendation ? We recommend that the Organization review control procedures so no invoices get paid without proper signed approval.
Community Transit of Watertown-Sisseton, Inc. will correct this deficiency in the 2021 fiscal year by instructing authorized office personnel to make sure there are initials with ok to pay on every invoice. The contracts bookkeeper will also review the invoices and let CTWSI staff know if initials are missing on any invoices.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
Track your findings and corrective action plans across audit cycles.
Start tracking findings →Monitor subrecipient audit findings and compliance status.
Start monitoring →Single Audit Intelligence is an independent tool powered by Federal Audit Clearinghouse data. Not affiliated with GSA, OMB, or any federal agency.