Finding Text
Finding #SA2025-002 Unallowable Expenditures Charged to the Grant Assistance Listing Number: 20.507, 20.526 Assistance Listing Title: COVID-19 – Federal Transit Cluster Name of Federal Agency: Department of Transportation Federal Award Identification Number: CA-2022-083-00, 2020-206, 2020-212 Criteria: Any expenditures charged to a grant should be reviewed thoroughly to ensure it is allowable under the terms of the grant agreement and the requirements of the Uniform Guidance. Condition: We selected forty samples of expenditures that were charged to the grant to determine if the expenditures were allowable and properly supported with documentation and noted that one sample included expenditures for special cleaning fees for the transit center in the amount of $575. City staff stated that the special cleaning fees should not have been charged to the grant as they are related to cleaning fees for the rental of the transit center for events and the cleaning fees were covered as part of the rental costs. Cause: We understand that the City meant to deduct the special cleaning costs from the final reimbursement request, but all grant funds had already been spent. Questioned Costs: We question costs of $4,615, which consists of the total amount of special cleaning costs charged to the grant because they were paid for through the cost of the rental of the transit center for the event. Effect: The City is not in compliance with the allowable expenditures under the terms of the grant. Recommendation: The City must develop procedures to ensure that expenditures charged to the grant are allowable prior to requesting reimbursement from the grantor. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.