Staff: HSIP guardrail reimbursement delayed pending state review and single‑audit determination

Town staff told the Rose Advisory Committee that the HSIP guardrail project remains under state review because state systems show federal funding tied to the town's recent street and signal work. The staff member said the state is requiring a 'single audit' whenever a unit of government receives or spends more than $1,000,000 in federal grant funds, and that discrepancy in records has delayed final action.

"We just hit a snag with the review because the state feels we've received lots of federal funding. We need to do a single audit," the staff member said, explaining that the town has been authorized for reimbursements but has not yet received checks. The staff member reported the town is in the reimbursement process for "a little over $1,000,000" for the street/signal project and that FEMA storm reimbursements for 2024 review out at roughly $600,000.

Staff said these funds appear in Caltrans' systems as approved reimbursements but that the physical checks have not arrived, which creates the appearance of federal funding received and thus may trigger the single-audit threshold. The staff member said the town is working with the state's Caltrans finance department and is advocating with state offices and FEMA to resolve timing and payment issuance so the audit issue can be cleared.

The committee asked questions about timing and responsibility; staff replied it expects to receive reimbursements within the fiscal year but that the audit could still be required once the funds post. Committee members directed staff to continue follow-up with state and federal partners and to report back when payments clear.