Audit 330903

U.S. Department of Transportation Pass-through Entity: North Carolina Department of Transportation Program Name: National Infrastructure Investments Federal Assistance Listing Number: 20.933 Significant Deficiency – Reporting Finding 2024-001 Criteria or Specific Requirement: Per the U.S. Department of Transportation general terms and conditions under the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant program, the recipient is required to submit to the USDOT a quarterly project progress report and recertification. Additionally, the recipient is required to submit a final project progress report and recertification no later than 120 days after the end of the period of performance. Further, per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. The City should have a control in place for reports submitted to the awarding agency to be reviewed by an employee within the department separate from the employee preparing the report. Condition: While the reports were timely submitted to the awarding agency, the reports submitted to the awarding agency were not reviewed by an individual at the City prior to submission. Context: There were 4 quarterly reports tested in which the report was not reviewed by an individual at the City other than the preparer prior to submission. Questioned Costs: None. Effect: By not having the required reports reviewed prior to submission, the City could erroneously submit incorrect data to the awarding agency. Cause: The grant liaison did not follow the City's Grants Management Policy. Recommendation: The City should ensure the program manager is following its Grant Management Policy and Uniform Guidance for this program by reports being reviewed prior to submission. Views of Responsible Officials: Management agrees with the finding and is implementing procedures to correct this which is further discussed in the Corrective Action Plan. Corrective Action Plan: See Corrective Action Plan prepared by the City.

U.S. Department of Transportation Pass-through Entity: North Carolina Department of Transportation Program Name: National Infrastructure Investments Federal Assistance Listing Number: 20.933 Significant Deficiency – Reporting Finding 2024-001 Criteria or Specific Requirement: Per the U.S. Department of Transportation general terms and conditions under the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant program, the recipient is required to submit to the USDOT a quarterly project progress report and recertification. Additionally, the recipient is required to submit a final project progress report and recertification no later than 120 days after the end of the period of performance. Further, per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. The City should have a control in place for reports submitted to the awarding agency to be reviewed by an employee within the department separate from the employee preparing the report. Condition: While the reports were timely submitted to the awarding agency, the reports submitted to the awarding agency were not reviewed by an individual at the City prior to submission. Context: There were 4 quarterly reports tested in which the report was not reviewed by an individual at the City other than the preparer prior to submission. Questioned Costs: None. Effect: By not having the required reports reviewed prior to submission, the City could erroneously submit incorrect data to the awarding agency. Cause: The grant liaison did not follow the City's Grants Management Policy. Recommendation: The City should ensure the program manager is following its Grant Management Policy and Uniform Guidance for this program by reports being reviewed prior to submission. Views of Responsible Officials: Management agrees with the finding and is implementing procedures to correct this which is further discussed in the Corrective Action Plan. Corrective Action Plan: See Corrective Action Plan prepared by the City.