Finding Text
Criteria: The Water Sector Program guidelines do not allow for advance payments.
Condition: The City requested reimbursement for retainage amounts for which it had not paid the funds as of the date of the request.
Cause: The City was unaware that retainage amounts were included in the request for reimbursement.
Effect: The City requested reimbursement for retainage amounts that had not been paid in the amount of $208,790, of which $148,011 was charged to federal award programs.
Recommendation: The City should carefully review grant reimbursement requests to ensure that all amounts requested represent actual expenditures.
Management’s Corrective Action Plan: The City will review grant reimbursements before submitting to ensure that all amounts requested represent actual expenditures.