Audit 393405

Federal Program – Federal Transit Cluster: Federal Transit Criteria or Specific Requirement – Cash Management – 2 CFR §215.22 Condition – The City drew grant funds in excess of immediate cash needs. Questioned Costs – N/A Context – Out of a population of ten grant draws, four draws were selected for testing. For one draw, there were funds that exceeded the immediate cash need. Our sample was not, and was not intended to be, statistically valid. Effect – The City did not minimize the time elapsing from the time the federal funds were drawn to the time they were expended Cause – The City did not have a good control process in place to monitor grant disbursements and ensure that grant funds were not drawn in excess of immediate cash needs. Identification as a Repeat Finding, if Applicable – N/A Recommendation – The City should implement controls specific to the grant draw process to ensure that grant project funds are reconciled and are not drawn prior to incurring or paying the expenditures. Views of Responsible Officials and Planned Corrective Actions – City staff, in the roles of both preparation and review, will ensure that in the process of developing future grant drawdowns, funds are allocated appropriately and accurately