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HomeMy WebLinkAboutTRI - County Regional Planning Commission Audit Single 9 30 22 SA FINAL RegionalIWAndd . _ � Orr • • TRI - COUNTY regional planning commission Year Ended September 30, Single Compliance 2022 Rehmann Tri-County Regional Planning Commission Table of Contents Page Independent Auditors' Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance 1 Schedule of Expenditures of Federal Awards 2 Notes to Schedule of Expenditures of Federal Awards 3 Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 4 Independent Auditors' Report on Compliance for the Major Federal Program and on Internal Control over Compliance Required by the Uniform Guidance 6 Schedule of Findings and Questioned Costs 9 Summary Schedule of Prior Audit Findings 12 MENEM Rehmann INDEPENDENT AUDITORS' REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE February 2, 2023 Board of Commissioners Tri-County Regional Planning Commission Lansing, Michigan We have audited the financial statements of the governmental activities and the general fund of Tri- County Regional Planning Commission (the "Commission"), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the Commission's basic financial statements. We issued our report thereon dated February 2, 2023, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain other procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole. 4169 ,,- 44_ LAC he HLB AND ACOCOUNTIING NETWORK 1 Tri-County Regional Planning Commission Schedule of Expenditures of Federal Awards For the Year Ended September 30, 2022 Assistance Listing Passed Pass-through/ Federal Federal Agency/Cluster/Program Title Number Through Grantor Number Expenditures U.S. Department of Commerce Economic Development Support for Planning Organizations: COVID 19-CARES Grant 11.302 Direct ED20CH13070092 $ 74,255 Support for Planning 11.302 Direct ED19CH13020026 79,101 Support for Planning 11.302 Direct ED22CH13020036 4,794 158,150 U.S. Department of Transportation Highway Planning and Construction Cluster: FHWA PL Funds 20.205 MDOT 2021-0011/Z4 658,091 Surface Transportation Program Grant 2020 20.205 MDOT 2018-0011/Z5/R1 47,965 Surface Transportation Program Grant 2021 20.205 MDOT 2021-0011/Z2/R1 34,560 Surface Transportation Program Grant 2022 20.205 MDOT 2021-011/Z5 18,543 Michigan Avenue Corridor Study 20.205 MDOT 2021-011/Z3/R1 213,614 Statewide Planning and Research 20.205 MDOT 2021-022/Z7 16,149 988,922 Total expenditures of federal awards $ 1,147,072 See notes to schedule of expenditures of federal awards. 2 Tri-County Regional Planning Commission Notes to Schedule of Expenditures of Federal Awards 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of the Tri-County Regional Planning Commission (the "Commission") under programs of the federal government for the year ended September 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Commission, it is not intended to and does not present the financial position, changes in net position or cash flows of the Commission. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting, which is described in Note 1 to the Commission's financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or other applicable guidance,wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. 2. DE MINIMIS COST RATE For purposes of charging indirect costs to federal awards, the Commission has not elected to use the 10 percent de minimis cost rate as permitted by§200.414 of the Uniform Guidance. 3. PASS-THROUGH ENTITIES The Commission receives certain federal grants as subawards from non-federal entities. Pass-through entities,where applicable, have been identified in the Schedule with an abbreviation,defined as follows: Pass-through Entity Abbreviation Pass-through Entity Name MDOT Michigan Department of Transportation ■ ■ ■ ■ ■ 3 Rehmann INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS February 2, 2023 Board of Commissioners Tri-County Regional Planning Commission Lansing, Michigan We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and the general fund of the Tri-County Regional Planning Commission (the "Commission"), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the Commission's basic financial statements, and have issued our report thereon dated February 2, 2023. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Commission's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control. Accordingly, we do not express an opinion on the effectiveness of the Commission's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Asignificant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Ahe OHLB ND ACOCOUNTIING NETWORK 4 Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Commission's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Commission's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. 4IC9 .n4 L LC 5 Rehmann INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR THE MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE February 2, 2023 Board of Commissioners Tri-County Regional Planning Commission Lansing, Michigan Report on Compliance for the Major Federal Program Opinion on the Major Federal Program We have audited the compliance of the Tri-County Regional Planning Commission (the "Commission") with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on the Commission's major federal program for the year ended September 30, 2022. The Commission's major federal program is identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. In our opinion, the Commission complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on the major federal program for the year ended September 30, 2022. Basis for Opinion on the Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Independent Auditors' Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the Commission and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the major federal program. Our audit does not provide a legal determination of the Commission's compliance with the compliance requirements referred to above. HLB AND ACOCOUNTIINGSNETWOW 6 Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the Commission's federal programs. Independent Auditors'Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Commission's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Commission's compliance with the requirements of the major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we: exercise professional judgment and maintain professional skepticism throughout the audit. identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Commission's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. obtain an understanding of the Commission's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. 7 Report on Internal Control Over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Independent Auditors' Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. Purpose of this Report The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly,this report is not suitable for any other purpose. 444,e, a4V— L LC 8 Tri-County Regional Planning Commission Schedule of Findings and Questioned Costs For the Year Ended September 30, 2022 SECTION I-SUMMARY OF AUDITORS'RESULTS Financial Statements Type of auditors' report issued: Unmodified Internal control over financial reporting: Material weakness(es)identified? yes X no Significant deficiency(ies) identified? yes X none reported Noncompliance material to financial statements yes X no noted? Federal Awards Internal control over major programs: Material weakness(es)identified? yes X no Significant deficiency(ies) identified? yes X none reported Type of auditors' report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with 2CFR 200.516(a)? yes X no Identification of major programs: Assistance Listing Number Name of Federal Program or Cluster 20.205 Highway Planning and Construction Cluster Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? yes X no 9 Tri-County Regional Planning Commission Schedule of Findings and Questioned Costs For the Year Ended September 30, 2022 SECTION II—FINANCIAL STATEMENT FINDINGS None noted. MENEM 10 Tri-County Regional Planning Commission Schedule of Findings and Questioned Costs For the Year Ended September 30, 2022 SECTION III—FEDERAL AWARD FINDINGS AND QUESTIONED COSTS None noted. MENEM 11 Tri-County Regional Planning Commission Summary Schedule of Prior Audit Findings For the Year Ended September 30, 2022 None noted. ■ ■ ■ ■ ■ 12