EIN: 953009680
UEI: LL5WPDMYN4V9
Data as of August 21, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 20, 2020. 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 July 20, 2020 (2224 days ago).
What is a management decision? →During the declared event, December 17, 2010 to January 4, 2011, severe rainstorms and resulting flooding damaged the COASTER (coastal) and the SPRINTER (inland) rail lines. The District submitted their PWs and FEMA approved these expenditures for reimbursement in 2012. The District incurred eligible expenditures and received reimbursement from 2011 to 2015 but did not record the reimbursement for these expenditures on the SEFA until fiscal year ending June 30, 2019. Cause: The District did not ensure that the federal expenditures for the FEMA program were reported on the SEFA consistent with grant requirements. Effect: The grant award and related federal expenditures were not recorded until fiscal year 2019. Questioned Costs: No questioned costs were identified as a result of District procedures. Context: The District performed a detailed reconciliation of its unearned revenue accounts and identified that the federal award had been previously received but not reported on the SEFA.Recommendation: We recommend the District strengthen its procedures for monitoring, reconciling, and reporting of its federal award programs.
Show full finding ▾Hide full finding ▴Finding 2019-001 Federal Program: Disaster Grants - Public Assistance (Presidentially Declared Disasters) CFDA No.: 97.036 Federal Grantor: U.S. Department of Homeland Security Pass-through Entity: California Governor?s Office of Emergency Services Pass-through Identification No.: FEMA-1952-DR-CA Compliance Requirement: Reporting Criteria: As per guidance outlined on the 2019 Compliance Supplement issued by Office of Management and Budget (OMB), non-Federal entities must record expenditures on the Schedule of Expenditures of Federal Awards (SEFA) when: (1) Federal Emergency Management Agency (FEMA) has approved the non-Federal entity?s Project Worksheet (PW), and (2) the non-Federal entity has incurred the eligible expenditures. Federal awards expended in years subsequent to the fiscal year in which the PW is approved are to be recorded on the non-federal entity?s SEFA in those subsequent years. Condition: During the declared event, December 17, 2010 to January 4, 2011, severe rainstorms and resulting flooding damaged the COASTER (coastal) and the SPRINTER (inland) rail lines. The District submitted their PWs and FEMA approved these expenditures for reimbursement in 2012. The District incurred eligible expenditures and received reimbursement from 2011 to 2015 but did not record the reimbursement for these expenditures on the SEFA until fiscal year ending June 30, 2019. Cause: The District did not ensure that the federal expenditures for the FEMA program were reported on the SEFA consistent with grant requirements. Effect: The grant award and related federal expenditures were not recorded until fiscal year 2019. Questioned Costs: No questioned costs were identified as a result of District procedures. Context: The District performed a detailed reconciliation of its unearned revenue accounts and identified that the federal award had been previously received but not reported on the SEFA.Recommendation: We recommend the District strengthen its procedures for monitoring, reconciling, and reporting of its federal award programs.
View of Responsible Official and Planned Corrective Actions: NCTD agrees with the finding that it did not timely report the revenues in the schedule of federal awards. As funds were received from FEMA, the cash receipts were recorded in a deferred account. In October 2018, Finance staff discovered the oversight and self-identified and self-corrected the accounting for the FEMA grant by recognizing the corresponding revenues and offsetting the deferred funds. The Finance Division, prior to the audit finding, had implemented monthly accounting reconciliations that reconcile the amounts in the deferred accounts to the funding programmed in projects. These reconciliations ensure that revenues are properly recognized as funds are being spent. Enhanced reporting has also been created through the implementation and use of Hubble in 2018, a reporting application software, that allows for effective analysis and management of capital projects and funding sources. Communication has been improved between Finance staff that have oversight of the capital program and discretionary grants and finance staff that are responsible for project accounting by meeting on a bi-weekly basis to discuss grant activities, compliance, and reporting requirements. In addition, project funding is being reviewed monthly during the Capital Project Steering Committee meetings to monitor the progress of projects. Through these control activities, District staff will ensure that federal revenues are properly and timely reported in the schedule of federal awards in accordance with the Compliance Supplement.
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.
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