Finding 2022-001 - Controls Over Cash Management (Significant Deficiency) Criteria: According to Title 2 U.S. Code of Federal Regulations (" CFR") Part 200 , paragraph 305, non-federal entities are required to minimize the time that elapses between the transfer of funds from the federal funding source and the disbursement of those funds by the non-federal entity for the program's intended purposes. Condition and Context: As a part of our testing over cash management of funds received from the federal funding source, we examined information showing the dates on which five program-related disbursement of federal funds were received by the Corporation , and we compared those dates to the dates when the Corporation remitted the amounts for the purposes of covering payroll expenses and paying its various contractors. We noted one draw for $1,184,367 that was received from the federal funding source with no payments made to the contractors for which the funds had been appropriated. This resulted in a period of 16 days between receipt of the federal funds and the corresponding payments to the contractors. We also noted one of the five draws tested were for an incorrect amount. The Corporation submitted a draw for $29,997 in error. The overdrawn funds were repaid to the federal funding source. The Corporation prepared a schedule of draws made during 2022 and it was noted that the Corporation drew or repaid an incorrect amount in four months of the year, of which some were corrected in the next period. Effect: As a result of these matters , the Corporation essentially borrowed money from the federal government and potentially delayed payment to vendors. Cause: The condition was caused by an oversight by management that resulted in invoices not being processed for payment unt i l well after the cash had been drawn by the Corporation and resulted in draws to processed for an incorrect amount. Questioned Costs: From our sample tests , the Corporation overdrew $29,997 for the month of May 2022. Recommendation : We recommend that management designate a specific individual to be responsible for monitoring the receipt of federal funds on a daily basis . This person should be tasked with ensuring that funds that have been transferred from the federal funding source are disbursed to the intended contractors within a short period following receipt of these funds and ensuring that the correct draw amounts are submitted. We also in compliance with Federal statutes, regulations and terms and conditions of the Federal award. The Corporation should have controls in place to document that salaries and overtime paid with federal funds were allowable. Timecards supporting hours worked should be approved and pay rates reviewed. Condition and Context: A summary of allowable charges for the grant was prepared for submission. Differences were noted when comparing the summary to timecards. Within the sample of 45, we noted that 31 timecards did not have a documented review. From the sample, we noted that the pay advice form, which reflects pay rate changes, for 2 employees did not indicate signature by an approver and only indicated the requestor's signature. The employees' new pay rate as indicated on the pay advice form was reflected in the payroll expenditure. Additionally, within the sample of 45, we noted 1 employee that did not have a pay advice form or contract to support the pay rate. We noted the following control items: ? 31 out of 45 timecards tested did not have documented review. ? 2 out of 45 employees tested did not have pay advice forms signed by both the requestor and reviewer. Only the requestor signed the form. ? 1 out of 45 employees tested did not have a pay advice form or other supporting documentation for the pay rate. Effect: Payroll expenditures could be inaccurately charged to the federal grant. Cause: The lack of documented timecard and pay rate approval were an oversight. Questioned Costs: None Recommendation: We recommend the Corporation maintain documented approval of all timecards and pay rate increases. Views of Responsible Officials and Planned Corrective Actions: The Transportation Department provides a spreadsheet that details time operators work by route. This process is used to align FTA funding streams with routes driven. The spreadsheet is kept by the Transportation Manager and reviewed by the Director of Transportation. These two positions approve time prior to submitting it for processing. GPTC is engaging its current payroll provider to assist in finding a technological solution to capturing start and end times of each operator. Until we can get this technical solution, an approval form will be submitted by the Transportation Department along with the allocation spreadsheet. As stated above, GPTC experienced a lot of turnover and personnel changes - the Human Resource Department had many. Pay advices are managed by this department. Our recommend that management prepare a schedule of all claims to determine whether there are additional amounts that have been overclaimed. Views of Responsible Officials and Planned Corrective Actions: In 2022, GPTC experienced a lot of turnover and personnel changes in multiple areas. In reassigning responsibilities, the Finance Department was designated as the area to handle FTA fund requests in June 2023. Absorption of these responsibilities required them to get an understanding of the process, formulate procedures for drawdowns, and develop a method for monitoring these dollars. The first drawdowns by the new team occurred in August 2023. FTA dollars are a major source of funding, so managing this process is highly important. GPTC has implemented a review process, as required by the FTA; and developed a spreadsheet for formulating amounts to be drawn. Iniquities in the spreadsheet were remedied in September 2023, and future processing has been good. GPTC realizes that FTA grants are reimbursable. The process requires prepayment of expenses, proof of payment, and reclamation of the FTA's portion of expended funds. So, future funds will be disbursed in a timely fashion. Large dollar amounts that require FTA funding for payment will be disbursed within three days, as required.