Audit 326872

Assistance Listing # 21.027 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds Fiscal year finding initially occurred: 2024 Criteria Costs charged to federal grant programs must follow the Uniform Guidance when determining if a cost is allowable under the program. One of the requirements is that a cost can only be funded by one program. Condition The City received reimbursement through the State of Louisiana’s Water Sector Program for expenditures that were already claimed through Coronavirus State and Local Fiscal Recovery Funds. Cause The City did not have proper controls in place to ensure that expenditures were not paid by multiple federal award programs. Effect The City utilized federal funds to pay for expenditures that had already been charged to other grant programs. Context A sample of 19 transactions were selected for audit from a population of 29 disbursements. The test found that one disbursement had already been charged to other federal grant programs. It was determined that $248,060 was charged to other federal programs and are considered questioned costs. Recommendation The City should review policies and procedures to ensure that the City does not continue to request reimbursement amounts that were received from other sources. Management’s Corrective Action Plan The City of Scott will implement policies and procedures to ensure that the City does not continue to request reimbursement for amounts that were received from other sources.

Assistance Listing # 21.027 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds Fiscal year finding initially occurred: 2024 Criteria In accordance with 2 CFR 200.320, the City of Scott is required to formally bid contracts that exceed $250,000. Condition The City expended $261,009 of Coronavirus State and Local Fiscal Recovery Funds on a contract that exceeded the required threshold but was not formally bid. Cause The City expended federal funds on contracts that were not properly bid by federal guidelines. Effect As a result, the City was not in compliance with procurement requirements with questioned costs totaling $261,009. Context A sample of 19 transactions were selected for audit from a population of 29 disbursements. The test found that a vendor was not properly contracted. This resulted in questioned costs of $261,009. Recommendation The City should review their policies and procedures to ensure that all contracts that have federal expenditures are properly bid in accordance with 2 CFR 200.320. Management’s Corrective Action Plan The City of Scott will review their policies and procedures to ensure that all contracts that have federal expenditures are properly bid in accordance with 2 CFR 200.320.

Assistance Listing # 21.027 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds Fiscal year finding initially occurred: 2023 Criteria In accordance with 31 CFR section 35.4(c), the City should provide an annual report detailing the accounting for the use of the federal award program funds. Condition The report included inaccurate information regarding the amount spent. Cause The City does not have adequate controls and procedures over reporting. Effect The City’s annual report did not reconcile to the total amount expended since inception in the amount of $946,521. Recommendation The City should review their established policies and procedures and make any necessary changes to ensure an effective control environment. Management’s Corrective Action Plan The City of Scott will review financial policies and procedures and make any necessary changes to ensure an effective control environment.

Assistance Listing # 21.027 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds Fiscal year finding initially occurred: 2024 Criteria The Water Sector Program guidelines do not allow for advance payments. Condition The City requested reimbursement for amounts for which it had not paid the funds as of the date of the request. Cause The City was unaware of the program requirements. Effect The City requested reimbursement for amounts that had not been paid at the time of request in the amount of $620,500. Recommendation The City should carefully review grant reimbursement requests to ensure that all amounts requested have been paid prior to requesting reimbursement. Management’s Corrective Action Plan The City of Scott will review grant reimbursements before submitted to ensure that all amounts requested represent actual expenditures.

Assistance Listing # 21.027 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds Fiscal year finding initially occurred: 2024 Criteria Costs charged to federal grant programs must follow the Uniform Guidance when determining if a cost is allowable under the program. One of the requirements is that a cost can only be funded by one program. Condition The City received reimbursement through the State of Louisiana’s Water Sector Program for expenditures that were already claimed through Coronavirus State and Local Fiscal Recovery Funds. Cause The City did not have proper controls in place to ensure that expenditures were not paid by multiple federal award programs. Effect The City utilized federal funds to pay for expenditures that had already been charged to other grant programs. Context A sample of 19 transactions were selected for audit from a population of 29 disbursements. The test found that one disbursement had already been charged to other federal grant programs. It was determined that $248,060 was charged to other federal programs and are considered questioned costs. Recommendation The City should review policies and procedures to ensure that the City does not continue to request reimbursement amounts that were received from other sources. Management’s Corrective Action Plan The City of Scott will implement policies and procedures to ensure that the City does not continue to request reimbursement for amounts that were received from other sources.

Assistance Listing # 21.027 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds Fiscal year finding initially occurred: 2024 Criteria In accordance with 2 CFR 200.320, the City of Scott is required to formally bid contracts that exceed $250,000. Condition The City expended $261,009 of Coronavirus State and Local Fiscal Recovery Funds on a contract that exceeded the required threshold but was not formally bid. Cause The City expended federal funds on contracts that were not properly bid by federal guidelines. Effect As a result, the City was not in compliance with procurement requirements with questioned costs totaling $261,009. Context A sample of 19 transactions were selected for audit from a population of 29 disbursements. The test found that a vendor was not properly contracted. This resulted in questioned costs of $261,009. Recommendation The City should review their policies and procedures to ensure that all contracts that have federal expenditures are properly bid in accordance with 2 CFR 200.320. Management’s Corrective Action Plan The City of Scott will review their policies and procedures to ensure that all contracts that have federal expenditures are properly bid in accordance with 2 CFR 200.320.

Assistance Listing # 21.027 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds Fiscal year finding initially occurred: 2023 Criteria In accordance with 31 CFR section 35.4(c), the City should provide an annual report detailing the accounting for the use of the federal award program funds. Condition The report included inaccurate information regarding the amount spent. Cause The City does not have adequate controls and procedures over reporting. Effect The City’s annual report did not reconcile to the total amount expended since inception in the amount of $946,521. Recommendation The City should review their established policies and procedures and make any necessary changes to ensure an effective control environment. Management’s Corrective Action Plan The City of Scott will review financial policies and procedures and make any necessary changes to ensure an effective control environment.

Assistance Listing # 21.027 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds Fiscal year finding initially occurred: 2024 Criteria The Water Sector Program guidelines do not allow for advance payments. Condition The City requested reimbursement for amounts for which it had not paid the funds as of the date of the request. Cause The City was unaware of the program requirements. Effect The City requested reimbursement for amounts that had not been paid at the time of request in the amount of $620,500. Recommendation The City should carefully review grant reimbursement requests to ensure that all amounts requested have been paid prior to requesting reimbursement. Management’s Corrective Action Plan The City of Scott will review grant reimbursements before submitted to ensure that all amounts requested represent actual expenditures.

Assistance Listing # 21.027 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds Fiscal year finding initially occurred: 2024 Criteria Costs charged to federal grant programs must follow the Uniform Guidance when determining if a cost is allowable under the program. One of the requirements is that a cost can only be funded by one program. Condition The City received reimbursement through the State of Louisiana’s Water Sector Program for expenditures that were already claimed through Coronavirus State and Local Fiscal Recovery Funds. Cause The City did not have proper controls in place to ensure that expenditures were not paid by multiple federal award programs. Effect The City utilized federal funds to pay for expenditures that had already been charged to other grant programs. Context A sample of 19 transactions were selected for audit from a population of 29 disbursements. The test found that one disbursement had already been charged to other federal grant programs. It was determined that $248,060 was charged to other federal programs and are considered questioned costs. Recommendation The City should review policies and procedures to ensure that the City does not continue to request reimbursement amounts that were received from other sources. Management’s Corrective Action Plan The City of Scott will implement policies and procedures to ensure that the City does not continue to request reimbursement for amounts that were received from other sources.

Assistance Listing # 21.027 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds Fiscal year finding initially occurred: 2024 Criteria In accordance with 2 CFR 200.320, the City of Scott is required to formally bid contracts that exceed $250,000. Condition The City expended $261,009 of Coronavirus State and Local Fiscal Recovery Funds on a contract that exceeded the required threshold but was not formally bid. Cause The City expended federal funds on contracts that were not properly bid by federal guidelines. Effect As a result, the City was not in compliance with procurement requirements with questioned costs totaling $261,009. Context A sample of 19 transactions were selected for audit from a population of 29 disbursements. The test found that a vendor was not properly contracted. This resulted in questioned costs of $261,009. Recommendation The City should review their policies and procedures to ensure that all contracts that have federal expenditures are properly bid in accordance with 2 CFR 200.320. Management’s Corrective Action Plan The City of Scott will review their policies and procedures to ensure that all contracts that have federal expenditures are properly bid in accordance with 2 CFR 200.320.

Assistance Listing # 21.027 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds Fiscal year finding initially occurred: 2023 Criteria In accordance with 31 CFR section 35.4(c), the City should provide an annual report detailing the accounting for the use of the federal award program funds. Condition The report included inaccurate information regarding the amount spent. Cause The City does not have adequate controls and procedures over reporting. Effect The City’s annual report did not reconcile to the total amount expended since inception in the amount of $946,521. Recommendation The City should review their established policies and procedures and make any necessary changes to ensure an effective control environment. Management’s Corrective Action Plan The City of Scott will review financial policies and procedures and make any necessary changes to ensure an effective control environment.

Assistance Listing # 21.027 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds Fiscal year finding initially occurred: 2024 Criteria The Water Sector Program guidelines do not allow for advance payments. Condition The City requested reimbursement for amounts for which it had not paid the funds as of the date of the request. Cause The City was unaware of the program requirements. Effect The City requested reimbursement for amounts that had not been paid at the time of request in the amount of $620,500. Recommendation The City should carefully review grant reimbursement requests to ensure that all amounts requested have been paid prior to requesting reimbursement. Management’s Corrective Action Plan The City of Scott will review grant reimbursements before submitted to ensure that all amounts requested represent actual expenditures.

Assistance Listing # 21.027 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds Fiscal year finding initially occurred: 2024 Criteria Costs charged to federal grant programs must follow the Uniform Guidance when determining if a cost is allowable under the program. One of the requirements is that a cost can only be funded by one program. Condition The City received reimbursement through the State of Louisiana’s Water Sector Program for expenditures that were already claimed through Coronavirus State and Local Fiscal Recovery Funds. Cause The City did not have proper controls in place to ensure that expenditures were not paid by multiple federal award programs. Effect The City utilized federal funds to pay for expenditures that had already been charged to other grant programs. Context A sample of 19 transactions were selected for audit from a population of 29 disbursements. The test found that one disbursement had already been charged to other federal grant programs. It was determined that $248,060 was charged to other federal programs and are considered questioned costs. Recommendation The City should review policies and procedures to ensure that the City does not continue to request reimbursement amounts that were received from other sources. Management’s Corrective Action Plan The City of Scott will implement policies and procedures to ensure that the City does not continue to request reimbursement for amounts that were received from other sources.

Assistance Listing # 21.027 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds Fiscal year finding initially occurred: 2024 Criteria In accordance with 2 CFR 200.320, the City of Scott is required to formally bid contracts that exceed $250,000. Condition The City expended $261,009 of Coronavirus State and Local Fiscal Recovery Funds on a contract that exceeded the required threshold but was not formally bid. Cause The City expended federal funds on contracts that were not properly bid by federal guidelines. Effect As a result, the City was not in compliance with procurement requirements with questioned costs totaling $261,009. Context A sample of 19 transactions were selected for audit from a population of 29 disbursements. The test found that a vendor was not properly contracted. This resulted in questioned costs of $261,009. Recommendation The City should review their policies and procedures to ensure that all contracts that have federal expenditures are properly bid in accordance with 2 CFR 200.320. Management’s Corrective Action Plan The City of Scott will review their policies and procedures to ensure that all contracts that have federal expenditures are properly bid in accordance with 2 CFR 200.320.

Assistance Listing # 21.027 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds Fiscal year finding initially occurred: 2023 Criteria In accordance with 31 CFR section 35.4(c), the City should provide an annual report detailing the accounting for the use of the federal award program funds. Condition The report included inaccurate information regarding the amount spent. Cause The City does not have adequate controls and procedures over reporting. Effect The City’s annual report did not reconcile to the total amount expended since inception in the amount of $946,521. Recommendation The City should review their established policies and procedures and make any necessary changes to ensure an effective control environment. Management’s Corrective Action Plan The City of Scott will review financial policies and procedures and make any necessary changes to ensure an effective control environment.

Assistance Listing # 21.027 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds Fiscal year finding initially occurred: 2024 Criteria The Water Sector Program guidelines do not allow for advance payments. Condition The City requested reimbursement for amounts for which it had not paid the funds as of the date of the request. Cause The City was unaware of the program requirements. Effect The City requested reimbursement for amounts that had not been paid at the time of request in the amount of $620,500. Recommendation The City should carefully review grant reimbursement requests to ensure that all amounts requested have been paid prior to requesting reimbursement. Management’s Corrective Action Plan The City of Scott will review grant reimbursements before submitted to ensure that all amounts requested represent actual expenditures.