APPROVAL DATE: 05/26/2006

APPROVED BY: Dawn Terrill, Secretary of Transportation

PURPOSE/COMMENT: To establish Vermont Agency of Transportation (VTrans) policy on federal funded grants to subrecipients that are covered by the Office of Management and Budget circular A-133 consistent with Agency of Administration Bulletin 5.

POLICY STATEMENT: It is the policy of the Vermont Agency of Transportation to ensure that federal awards are used for authorized purposes in compliance with laws, regulations, and the provisions of appropriate grant agreements.

DIVISION LEVEL ROLES

Each Division will adopt written procedures to detail its process for monitoring subrecipients. The procedures as adopted are recorded and retained in the Finance and Administration Business Office.

Finance and Administration is responsible for monitoring and documenting Agency compliance with Agency of Administration Bulletin 5 and VTrans written procedures.

AUDIT NOT REQUIRED

For subrecipients that expend less in combined federal awards than the established OMB Circular A-133 threshold, an A-133 audit is not required. Instead, Program Managers will require subrecipients to provide the following information within nine (9) months after the end of the subrecipient's fiscal year:

1) Subrecipient produced financial statements.

2) A schedule of federal financial assistance for VTrans grants only. This schedule shall list by Catalog of Federal Domestic Assistance (CFDA) number, all VTrans grant numbers, and the fiscal year expenditures for each grant.

3) At the Program Manager's discretion, an Agreed-Upon-Procedures report, related to the VTrans schedule of federal financial assistance, as specified in the grant agreement.

AUDIT REQUIRED

Subrecipients that expend combined federal awards above the established Circular A-133 Audit threshold must submit independently audited reports in accordance with the requirements of OMB Circular A-133 within nine (9) months after the end of the subrecipient's fiscal year.