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GREATER CLEVELAND REGIONAL TRANSIT AUTHORITY CUYAHOGA COUNTY TABLE OF CONTENTS TITLE PAGE Schedule of Expenditures of Federal Awards ............................................................................................... 1 Notes to the Schedule of Expenditures of Federal Awards .......................................................................... 2 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Required By Government Auditing Standards ............................. 3 Independent Auditor’s Report on Compliance with Requirements Applicable to Each of the Major Federal Programs and on Internal Control Over Compliance Required by the Uniform Guidance ............................................................................................................................ 5 Schedule of Findings ..................................................................................................................................... 9 Independent Auditor’s Report on Compliance With Requirements for Federal Funding Allocation Data .................................................................................. 13 This page intentionally left blank. GREATER CLEVELAND REGIONAL TRANSIT AUTHORITY CUYAHOGA COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2019 FEDERAL GRANTOR Federal Pass Through Passed Pass Through Grantor CFDA Entity Identifying Through to Total Federal Program / Cluster Title Number Number Subrecipients Expenditures U.S. DEPARTMENT OF TRANSPORTATION Federal Transit Cluster Program/Direct Programs Assistance Formula Grants 20.507 $ 18,588,053 Federal Transit Administration Capital and Operating Grants Sec 5307 Bus Acquisitions, Preventive Maintenance, Station Construction 20.507 OH-2018-002 2,720,716 Federal Transit Administration Capital Improvement Grants 20.500 69,786 501,651 5309 FY 2013 Rail Formula 20.525 OH-54-0002 800,389 2014 SOGR 20.525 OH-54-0004 243,938 2015 SOGR 20.525 OH-54-0007 806,405 2016 sec 5337 SOGR 20.525 OH-2016-055 247,405 Sec 5337 State of Good Repair 20.525 OH-2018-001 880,499 FY2018 Section 5337 SOGR 20.525 OH-2018-024 5,869,075 2015 Sec 5339 Bus and Bus Facilities 20.526 OH-34-0024 104,274 Total Federal Transit Cluster Program $ 69,786 $ 30,762,405 Transit Service Cluster Programs 2017 Section 5310- Paratransit Improvement Program 20.513 OH-2017-029 351,296 New Freedom Program (Travel Trainer) 20.521 OH-57-0022 162,985 Total Transit Service Cluster Programs $ 514,281 Career Pathways Program 20.514 OH-64-7001 750 Federal Highway Administration: Direct Program Highway Research and Development Program Connecting Cleveland Project 20.200 693JJ31850009 4,208,671 Highway Planning and Construction Cluster: Passed Through the Ohio Department of Transportation: Opportunity Corridor East 10th Street Waiting Environments 20.205 CUY-E. 10th Street 81,628 E. 105th Opportunity Corridor 20.205 CUY- E. 105th Opp. Corr. Bridge 19,383 E. 89th Opportunity Corridor Bridge 20.205 CUY- E.79th Street Bridge 19,383 Total Highway Planning and Construction Cluster $ 120,394 TOTAL U.S. DEPARTMENT OF TRANSPORTATION $ 69,786 $ 35,606,501 U.S. DEPARTMENT OF HOMELAND SECURITY Direct Program FEMA Transportation Security Administration- Transit Security Grant Program 97.075 EMW-2016-RA-00059-S01 84,217 FEMA Transportation Security Administration- Transit Security Grant Program 97.075 EMW-2017-RA-00053-S01 200,433 FEMA Transportation Security Administration- TSA/CANINES 97.072 HSTS0215HNCP431 323,143 Total U.S Department of Homeland Security $ 607,793 Total Expenditures of Federal Awards $ 69,786 $ 36,214,294 The accompanying notes are an integral part of this schedule. 1 GREATER CLEVELAND REGIONAL TRANSIT AUTHORITY CUYAHOGA COUNTY NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 CFR 200.510(b)(6) FOR THE YEAR ENDED DECEMBER 31, 2019 NOTE A – BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Greater Cleveland Regional Transit Authority (the Authority) under programs of the federal government for the year ended December 31, 2019. The information on this Schedule is prepared 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 Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority. NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. The Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. NOTE C - SUBRECIPIENTS The Authority passes certain federal awards received from U.S. Department of Transportation to other governments or not-for-profit agencies (subrecipients). As Note B describes the Authority reports expenditures of Federal awards to subrecipients when paid in cash. As a subrecipient, the Authority has certain compliance responsibilities, such as monitoring its subrecipients to help assure they use these subawards as authorized by laws, regulations, and the provisions of contracts or grant agreements, and that subrecipients achieve the award’s performance goals. NOTE D - MATCHING REQUIREMENTS Certain Federal programs require the Authority to contribute non-Federal funds (matching funds) to support the Federally-funded programs. The Authority has met its matching requirements. The Schedule does not include the expenditure of non-Federal matching funds. 2 Lausche Building, 12th Floor 615 Superior Avenue, NW Cleveland, Ohio 44113-1801 (216) 787-3665 or (800) 626-2297 [email protected] INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS REQUIRED BY GOVERNMENT AUDITING STANDARDS Greater Cleveland Regional Transit Authority Cuyahoga County 1240 West 6th Street Cleveland, Ohio 44113 To the Board of Trustees: We have audited, in accordance with auditing standards generally accepted in the United States and the Comptroller General of the United States’ Government Auditing Standards, the financial statements of the Greater Cleveland Regional Transit Authority, Cuyahoga County, (the Authority) as of and for the years ended December 31, 2019 and 2018, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements and have issued our report thereon dated June 30, 2020. Internal Control Over Financial Reporting As part of our financial statement audit, we considered the Authority’s internal control over financial reporting (internal control) to determine the audit procedures appropriate in the circumstances to the extent necessary to support our opinion on the financial statements, but not to the extent necessary to opine on the effectiveness of the Authority’s internal control. Accordingly, we have not opined on it. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, when performing their assigned functions, to prevent, or detect and timely correct misstatements. A material weakness is a deficiency, or combination of internal control deficiencies resulting in a reasonable possibility that internal control will not prevent or detect and timely correct a material misstatement of the Authority’s financial statements. A significant 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. 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 internal control deficiencies that might be material weaknesses or significant deficiencies. Given these limitations, we did not identify any deficiencies in internal control that we consider material weaknesses. However, unidentified material weaknesses may exist. Efficient Effective Transparent 3 Greater Cleveland Regional Transit Authority Cuyahoga County Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards Page 2 Compliance and Other Matters As part of reasonably assuring whether the Authority’s financial statements are free of material misstatement, we tested its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could directly and materially affect the determination of financial statement amounts. However, opining on compliance with those provisions was not an objective of our audit and accordingly, we do not express an opinion. The results of our tests disclosed no instances of noncompliance or other matters we must report under Government Auditing Standards. Purpose of this Report This report only describes the scope
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