Reference Number:
2024-013
Prior Year Finding:
No
Federal Agency:
U.S. Department of Transportation
State Agency:
Agency of Transportation
Federal Program:
Federal Transit Cluster
Assistance Listing Number:
20.500, 20.507, 20.526
Award Number and Year:
VT-04-0021-01 (3/14/2013 – 6/30/2016)
Complianc...
Reference Number:
2024-013
Prior Year Finding:
No
Federal Agency:
U.S. Department of Transportation
State Agency:
Agency of Transportation
Federal Program:
Federal Transit Cluster
Assistance Listing Number:
20.500, 20.507, 20.526
Award Number and Year:
VT-04-0021-01 (3/14/2013 – 6/30/2016)
Compliance Requirement:
Cash Management, Period of Performance
Type of Finding:
Significant Deficiency in Internal Control Over Compliance, Other Matters
Recommendation:
We recommend that VTrans review and enhance grant closeout procedures and internal controls to ensure that grants are closed out timely. We further recommend that VTrans review and enhance procedures and internal controls over cash management to ensure that cash draws are performed only against grants for which the period of performance has not expired.
Views of responsible officials:
Management agrees with the finding.
Corrective Action Plan:
The following factors contributed to the noncompliance: VTrans experienced staff turnover, at which point close out processes were missed in 2016. This resulted in a grant remaining with an open status in the TrAMS system well beyond the period of performance. During the 2024 review by program staff, a drawdown was inadvertently processed for this grant with the expired period of performance. At the time, VTrans lacked a formal, documented grant closeout process for FTA grants in the TrAMS system. Additionally, there was a breakdown in communication between the Accounts Receivable (AR) team and the Public Transit Program team regarding period of performance eligibility prior to processing the draw.
VTrans has taken the following steps to strengthen internal controls and prevent recurrence of this issue:
1. Formalized Closeout Procedures: VTrans has implemented a structured grant closeout process for the AOT Public Transit Program that clearly defines responsibilities, timelines, and verification steps to ensure all federal awards are closed timely and in compliance with FTA requirements. This process assigns specific tasks to designated staff members and ensures that no drawdowns occur after the period of performance has ended.
2. Annual Period of Performance Review: VTrans has established and documented an annual review process for FTA grant periods of performance. This review has been formally integrated into the Agency’s Public Transit cash management procedures, ensuring that grant end dates are proactively monitored, and necessary extensions or closeouts are addressed before expiration.
3. Enhanced Communication and Documentation: VTrans has updated the internal Excel file used to facilitate communication between the Public Transit Program team and the AR team. The file now includes a designated column for period of performance, ensuring that all drawdowns are reviewed for eligibility before processing. This is also addressed in an update to the Agency’s Public Transit cash management procedure memo.
VTrans will coordinate with FTA to determine the appropriate resolution for these funds. Any necessary repayment or adjustments will be completed in accordance with FTA guidance. At this time, FTA has not requested the funds be returned.
Scheduled Completion Date of Correction Action Plan:
All corrective actions will be implemented as of March 1, 2025.
Contacts for Corrective Action Plan:
Ross MacDonald, Public Transit Director
ross.macdonald@vermont.gov