Finding Text
Condition: The Company received CSLFRF subrecipient funding from the City of Roanoke (the “City”) in the prior year. The funding is governed by a memorandum of understanding (MOU) between the City and the Company. The City provided these CSLFRF funds to the Company for the Company to provide Micro Transit services with ADA-accessible vehicles and to purchase bus shelters, sidewalk improvements, and other improvements for high-use transit locations. Within Article III of the MOU, the Company was required to submit an annual written report by December 1, 2023 and each following year through December 1, 2025 that included a narrative explaining how and on what expenses the funding was spent and other project specific information. We noted that an annual report was not submitted on December 1, 2023 or December 1, 2024. This results in a material departure from the MOU and a violation of the reporting compliance attribute for CSLFRF. Criteria: Annual reporting requirements as mandated by the MOU should be prepared and submitted to maintain compliance with the agreement. Cause: Lack of proactive grant administration of CSLFRF funds. Effect: The reporting requirements for the CSLFRF program were not met. Recommendation: A designated management level individual should have oversight of funds received under federal programs and ensure that any applicable reporting requirements are properly prepared, reviewed, and submitted to their applicable grantor organization. View of Responsible Officials: GRTC concurs with the finding. Due to staff turnover on both the company and city sides the Director of Finance wasn’t aware of this requirement spelled out in the MOU. It didn’t come to their attention until the audit finding disclosed such information. Given that these funds are now exhausted GRTC doesn’t see a pressing prospective remedy is needed however in the future will be more diligent in reviewing and abiding by strictures in funding agreements. In company’s defense not once did anyone at the City remind or even notify GRTC that this information was needed/requested/desired at any time.