ROANOKE, Va. – Valley Metro is in a financial storm after a scathing audit of the bus service’s money management was released.
A public accounting firm based out of Roanoke highlighted the weaknesses of the bus company.
10 News learned in the audit there was a lack of grant management oversight and cash flow that resulted in contractors and vendors not getting paid on time to build the new bus transfer station.
The audit shows contractors were not paid for over 30 days. One unidentified vendor was not paid for over 90 days.
The report said repeated delays in payments could result in work stoppage and project delays.
Another finding in the audit — monthly bank statements were not prepared by an accountant and reviewed and approved by a supervisor in a timely manner.
The audit goes on to say that Valley Metro staff were not able to apply for federal grant monies in a timely manner, and that led to poor cash flow management resulting in vendor and contractor invoices not being paid on time.
The audit shows that an overall lack of financial management within Valley Metro led to a host of cascading problems from not allocating federal and state grants in a timely manner to causing poor performance of certain financial duties such as Roanoke’s annual city audit.
Auditors did make recommendations, one of which is to hire a financial manager who can oversee the incoming grant money and facilitate that money being used to pay contractor invoices on time.
Valley Metro management has agreed to this and many of the other recommendations made by the auditor.