Finding Text
2024-006: Federal Transit Cluster – AL# 20.507, Period of Performance – Significant Deficiency, Controls
over Compliance
Condition
There were numerous grants awarded to the Company that had award end dates prior to June 30, 2024 that had not been appropriately closed out at year-end.
Criteria
All grants that are not active should be closed out within the grant awards management system after their award end date.
Cause
Lack of proactive cash flow and grant management.
Effect
Out of 18 federal grant awards tested, 6 had award end dates prior to June 30, 2024. All 6 were still marked as active in the grant award management system as of June 30, 2024, with total remaining funds on these awards totaling $673,179. Two of these grant awards had award beginning dates over 15 years old, had no activity during FY2024, and had not been closed out by June 30, 2024.
Recommendation
A designated management level individual should close out all grant awards whose period of performance has expired within the grants management system.
View of Responsible Officials
Five FTA grants are in Active Award/Ready for Closeout (as of August 13, 2024), including VA-2021-038-01, VA-2016-009-01, VA-2021-037-01, VA-2016-016-01 and VA-04-0027-01. Additionally, an inquiry was sent to the FTA on August 19, 2024 on what could be done with the remaining funds in VA-2019-018. Grant VA-2023-002-00 has experienced delays due to the all-electric vehicle demand and supply chain issues. GRTC has been in communications with the FTA regarding this situation. All other active FTA grants have end of performance dates in 2025.