We reviewed COPS, OJP, and OVW closeout processes to determine whether the grant closeout policies and procedures are adequate to ensure that: (1) expired grants are closed in a timely manner; (2) grant funds are drawn down in accordance with federal regulations, DOJ policy, and the terms and conditions of the grant; and (3) remaining grant funds are deobligated prior to closeout.

We conducted our audit in accordance with Government Auditing Standards. We included such tests as were necessary to accomplish the audit objectives. The audit generally covered, but was not limited to, all expired DOJ grants that had not been closed by COPS, OJP, and OVW, as of December 2005, as well as all grants closed during FYs 1999 through 200 5. Audit work was conducted at COPS, OJP, OVW, and selected grantees.

To determine whether COPS, OJP, and OVW closed expired grants in a timely manner, we requested a list of all expired grants that had not been closed as well as a list of all grants closed between FYs 1999 through 2005. For grants which had been closed, we reviewed the closeout date to determine whether the grant was closed within 6 months of the grant expiration. For grants which had not been closed, we reviewed the grant end date to determine whether the grant had been expired for more than 6 months without being closed. In order to determine the reasons for the delay in the closeout process, we then reviewed a sample of grants that had either been expired for more than 6 months and that had not been closed or were closed more than 6 months after the grant end date. If the delays in the closeout process were due to grantee non-compliance, such as not submitting final financial and progress reports, we attempted to determine whether COPS, OJP, and OVW had awarded any new grants during the delay. We also conducted our own analysis to determine the length of time it would take to eliminate the backlog of expired grants based on the historical closeout practices of COPS, OJP, and OVW.

To determine whether COPS, OJP, and OVW allowed grantees to draw down funds more than 90 days past the grant end date, we compared the grant end date with the date of the last drawdown as reported on the grant payment history. For all grants where the date of the last drawdown was made after the grant end date, we reviewed the grant payment history to determine the number of grant drawdowns made and the amount of those drawdowns. In addition, for the following sample of grants in which COPS, OJP, and OVW allowed the grantee to draw down federal funds after the liquidation period, we conducted expenditure testing at the grantee’s location to determine whether the costs were properly charged to the grant in accordance with applicable laws, regulations, guidelines, and terms and conditions of the grant.

To determine whether any grant funds remained on expired grants administered by COPS, OJP, and OVW, we compared the grant end date with the date of the grant payment history to identify all grants that had been expired for more than 90 days. For all expired grants more than 90 days past the grant end, we reviewed the grant payment history to determine the amount of remaining grant funds.