Finding 453170 (2022-001)

2 CFR 1201.1 gives regulatory effect to the Department of Transportation for 2 CFR 200.305(b)(3), which states, in part, when the reimbursement method is used, the Federal awarding agency or pass-through entity must make payment within 30 calendar days after receipt of the billing, unless the Federal awarding agency or pass-through entity reasonably believes the request to be improper.The County receives grants, tax rebates, and farebox revenues that are reported to reduce the total expenditures eligible for reimbursement. In the first half of 2022, the formula to calculate the drawdown contained an error that resulted in overstated expenditures. The reimbursement request was submitted based on this work paper and due to the formula error, the drawdown of funds in excess of the eligible expenditures by $50,946.By requesting funds in excess of the calculated eligible expenditures, the County cannot properly account for and expend these funds within the 30 calendar days allotted for the reimbursement method, ultimately resulting in a noncompliance.We recommend the County add additional procedures or controls to further test the accuracy of the work papers used to calculate the reimbursements, prior to submitting them.