Finding Text
Finding No. 2024-004: Period of Performance Federal Program Affected: Federal Transit – ALN 20.526 & ALN 20.526 Compliance Requirement: Period of Performance Questioned Costs: $168,976 Known Questioned Costs Condition and Cause: The City did not have a control process in place to verify and have written approval for federal funding reimbursement requests submitted outside of the grant award period of performance. Criteria and Effect: The City’s internal control structure failed to obtain written approval for grant extensions on reimbursement requests submitted for expenditures outside of individual grant award period of performance. The City did not track pre-award costs to ensure proper cutoff of grant expenditures. The lack of controls resulted in noncompliance with program requirements and questioned costs to the program. All questioned costs related to period of performance was identified during testing. Recommendation: The City should obtain written approval or grant award extensions before incurring expenditures and submitting for reimbursement from the federal program outside of the grant award period of performance. Repeat Finding from Prior Year: No Response/Corrective Action Plan: The City agrees with the above finding. See Corrective Action Plan.