Finding Text
Federal Grantor: U.S. Department of Transportation
Pass-Through Grantor: Missouri Sheriff’s Association, Missouri Department of Public Safety, Missouri Department of Transportation, Missouri Secretary of State, Missouri Department of Health and Senior Services.
Federal ALN Number: 20.205
Award Year: 2021
Questioned Costs: None
Criteria: Federal award requirements state that recipients receiving advances of federal funds must implement procedures to minimize the time elapsing between the receipt of federal funds and the disbursement of the funds. BRO program regulations state that Local Public Agencies (Lawrence County) must “develop cash management procedures to ensure payment is made to the contractor/consultant within two (2) business days of receipt of funds from MoDOT.”
Condition: Our review of BRO program related reimbursement requests and disbursements noted an instance in which the County requested $254,746 on October 27, 2020 and received the funds on December 7, 2020. However, the payment was not remitted to the construction company until January 14, 2021.
Cause: The cover page of the invoice reimbursement request reported $263,812 on the cover page, the federal reimbursement portion on the following page reported $9,066. However, there was an additional page that contains the invoice from the construction company for $254,746, which was overlooked by the County when payments were remitted in 2020.
Effect: The invoice amounts occurred in 2020, but due to the timing difference, the amounts were disbursed in the following fiscal year. Additionally, non-compliance with Uniform Guidance could result in penalties or impact eligibility for future federal grants.
Recommendation: We recommend that the County implement procedures to ensure that federal funds are disbursed in a timely manner in accordance with federal regulations and the terms and conditions of federal awards.