Finding Text
Assistance Listing Number, Federal Agency, and Program Name - 20.507 and 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Transit Formula Grants and Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Program
Federal Award Identification Number and Year - N/A
Pass through Entity - Colorado Department of Transportation
Finding Type - Material weakness
Repeat Finding - Yes
2021-004
Criteria - 2 CFR 200.508(b) outlines the auditee responsibilities to prepare appropriate financial statements, including the schedule of expenditures of federal awards (SEFA), in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expended.
Condition - The City did not have sufficient controls in place to ensure that the schedule of expenditures of federal awards was prepared correctly.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - N/A
Context - The schedule of expenditures of federal awards required changes of approximately $2,062,000 in order for the SEFA to be correctly stated. The revisions made to the SEFA did not impact major program determination.
Cause and Effect - The City included expenses spent relating to eligible expenses under the Federal Transit Cluster on the original SEFA; however, there was no approved grant award as of audit testing. Revisions to the schedule of expenditures of federal awards were required to ensure that reported expenditures were accurate and had approved grant agreements and awards. The revisions made to the SEFA did not impact major program determination.
Recommendation - We recommend that the City implement sufficient processes and controls to ensure that the SEFA agrees to the underlying records of federal expenditures incurred.
Views of Responsible Officials and Corrective Action Plan - The City hired a full time grants manager in February 2024 to establish procedures to track grants that are awarded to and expended by the City. A grant committee has been established with key personnel in the City that works with grants, and monitoring spreadsheets have been developed to track pending grant applications and awarded grant activity. These tools will be further enhanced with key due dates to ensure that grants are applied for by the required deadlines and requests for reimbursement are completed in a timely manner. In addition, the City will research grant management software options to further enhance grant monitoring.