Finding 1173214 (2025-004)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2025
Accepted
2026-02-11

AI Summary

  • Issue: Some contractors and vendors were paid late, with two instances exceeding 30 days, and 15 out of 25 grant reimbursements were submitted late, affecting cash flow.
  • Requirements Impacted: Timeliness and accuracy in grant management oversight were not met, as reimbursements were not requested within the required 90 days.
  • Recommended Follow-Up: Assign a management-level individual to ensure timely grant drawdowns and prompt vendor payments, along with improved training for finance staff.

Finding Text

Condition: We noted two instances out of 25 where contractors and vendors were not paid for over 30 days. We also noted that grant reimbursements were not submitted within 90 days on 15 of 25 Transit Cluster disbursements tested. Of those 15 instances, three disbursements did not have a reimbursement requested for over 90 days and were requested after the end of fiscal year 2025. Criteria: All grant activities should include management level oversight to ensure timeliness, accuracy, and compliance with specified grant requirements. Cause: Lack of proactively drawing down Transit grants in latter half of fiscal year 2025 and lag in payment approvals for vendor invoices. Effect: Multiple vendors were not paid for over 30 days after receipt of invoice. Lag in reimbursement requests can cause cash flow issues. Recommendation: A designated management level individual should have oversight to require timely drawdowns of grants and timely payment of invoices. View of Responsible Officials: GRTC acknowledges this finding and will continue to address this issue via updated grant management processes and training additional finance staff on grant writing, pre-award and post-award activities.

Corrective Action Plan

GRTC acknowledges this finding and will continue to address this issue via updated grant management processes and training additional finance staff on grant writing, pre-award and post-award activities.

Categories

Cash Management

Other Findings in this Audit

  • 1173210 2025-004
    Material Weakness Repeat
  • 1173211 2025-004
    Material Weakness Repeat
  • 1173212 2025-004
    Material Weakness Repeat
  • 1173213 2025-004
    Material Weakness Repeat
  • 1173215 2025-005
    Material Weakness Repeat
  • 1173216 2025-005
    Material Weakness Repeat
  • 1173217 2025-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.16M
20.509 FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM $570,698
20.507 FEDERAL TRANSIT FORMULA GRANTS $185,959