Finding 1138104 (2024-001)

Criteria: The Uniform Guidance (2 CFR Part 200) governs how federal funds are spent, including matching and cost-sharing requirements for U.S. Department of Transportation grants. Condition: The City submitted and was reimbursed for costs that exceeded the federal agencies cost share percentage at the time of reimbursement. Cause: The City was calculating eligible reimbursable grant expenses with higher cost allocation percentage. The agreement stipulated a seventy-five/twenty-five cost share allocation. The City utilized an eighty/twenty cost share allocation when completing its reimbursement request. Effect: This calculation resulted in the City being reimbursed a higher amount for eligible expenses. The higher amount reimbursed occurred during the first reimbursement request under this program. Questioned Costs: Not applicable. Recommendation: We recommend that the City strengthen internal controls to ensure that the correct cost share as stipulated by grant agreements is utilized when submitting grant reimbursement requests. We also recommend that in its next reimbursement request under this program, the City work with grantor agency to reflect the adjustment for the amount over reimbursed as of September 30, 2024 and ensure that the Federal cost share amount for the program is properly reimbursed for the remaining term of the program.