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6.E. - Page 16 of 47 <br />City of Redwood City <br />Single Audit Reports <br />Schedule of Findings and Questioned Costs <br />For the fiscal year ended June 30, 2018 <br />Section II - Financial Statements Findings <br />No financial statement findings were noted. <br />Section III - Federal Award Findings and Questioned Costs <br />2018-001 Cash Management, Control Activities (Significant Deficiency) and Compliance <br />Program: <br />Railroad Development Grant (CFDA Number 20.314, U.S. Department of Transportation, Pass-through <br />from State of California, Award Number STPLR-75000(231), STPLR-75000(236), STPLR-75000(237)) <br />Criteria: <br />Per City's agreement with California Department of Transportation, paragraph 16, "Not more frequently <br />than once a month, but at least quarterly, Local Agency will prepare and submit to Caltrans invoices for <br />actual allowable costs incurred." <br />Condition: <br />During the performance of the audit, we noted that the City submitted reimbursement requests totaling <br />$27,700 to the State of California on August 19, 2017 covering periods through July 15, 2016 and February <br />28, 2017. Per review of the grant agreement between the City and the State, the State required the City to <br />submit the reimbursement requests at least quarterly. Even though the State reimbursed the expenditure, <br />we still considered this late submission to be non-compliant with the State requirements. <br />In addition, we noticed that as of the date we issued the report, the City didn't submit any reimbursement <br />requests for an additional $546,254 of expenditures incurred during the fiscal year. <br />Cause: <br />The City didn't prepare the invoices timely. <br />Context and Effect: <br />The City could not demonstrate that it was in full compliance with the cash management compliance <br />requirement of the program. <br />Questioned Costs: <br />No questioned cost were noted. <br />Recommendation: <br />We recommend that the City to implement controls to ensure the timely billing for the grants and <br />compliance with grant agreements. <br />View of Responsible Officials and Planned Corrective Action: <br />This oversight was an isolated incident. The City will submit reimbursement requests for this grant on a <br />quarterly basis. The next quarterly reimbursement, which will include costs through December 31, 2018, <br />will be submitted to the California Department of Transportation no later than January 31, 2019. <br />10 269 <br />