CITY OF WRAY, COLORADOLocal Government

DEPARTMENT OF TRANSPORTATION 2019-001 Airport Improvement Program ? CFDA No. 20.106 Grant period ? Year ended December 31, 2019 Significant Deficiency: As discussed at Finding 2019-002, costs submitted for reimbursement are not required to be reviewed to determine whether or not they have been paid for with entity funds before reimbursement is requested from the federal government. Because of the failure to require these reviews, there is a possibility that costs could be claimed for reimbursement before being paid. Procedures should be implemented to ensure that costs have been paid prior to being submitted for reimbursement.

DEPARTMENT OF TRANSPORTATION 2019-002 Airport Improvement Program ? CFDA No. 20.106 Grant period ? Year ended December 31, 2019 Criteria and Condition: When entities are funded on a reimbursement basis, program costs mut be paid for by entity funds before reimbursement is requested from the federal government. The entity has not complied with this requirement. Context: A sample of 20 invoices totaling $4,670,592 was selected for audit from a population of 25 invoices totaling $5,089,668. The test found one invoice that was not paid prior to being submitted for reimbursement. Our sample was a statistically valid sample. Cause: Costs submitted for reimbursement are not required to be reviewed to determine whether or not they have been paid for with entity funds before reimbursement is requested from the federal government. Effect: $25,838 of costs are questioned as a result of failing to meet cash management requirements. Recommendation: Procedures should be implemented to ensure that costs have been paid prior to being submitted for reimbursement. Management?s Response and Planned Corrective Actions: The City agrees with the auditors? recommendation and the procedures will be implemented to ensure compliance with cash management requirements. The City issued payment on the invoice on May 22, 2020.