Finding 1062056 (2021-001)

Findings and Questioned Costs for Federal Awards U.S. Department of Transportation Program Name: Railroad Rehabilitation and Improvement Financing Program CFDA# 20.316 Finding 2021-1 Significant Deficiency Material noncompliance Lack of reporting under Financial and Project Reports requirement 4.6 Criteria: Per the agreement with Federal Railroad Administration for the Railroad Rehabilitation and Improvement Financing Loan, GRTA must provide audited financial statements within 120 days after fiscal year end. Condition: GRTA did not provide the audited financial statements within the required timeframe. Questioned costs: Not applicable Context: As of 120 days after year end, GRTA was unable to provide audited financial statements to the Administer. Effect: No definitive effect of missing this deadline was noted. Cause: GRTA lacked the financial resources needed to complete the audit on a timely basis. Recommendation: GRTA should develop a schedule to complete the audit on a timely basis and prioritize the use of its financial resources accordingly. View of responsible officials and planned corrective actions: GRTA will develop a time schedule to ensure that the audits are completed within 120 days after the fiscal year end. GRTA will set aside certain annual encroachment lease payments to ensure that financial resources will be available to pay for the audit services.