Audit 367258

2024-009: Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Information on Federal Program: United States Department of the Treasury. Federal Assistance Listing Number 21.027 – Coronavirus State and Local Fiscal Recovery Funds. Compliance Requirements: Allowable Costs/Cost Principles Criteria: Per 2 CFR § 200.403(g), costs must be adequately documented. Under 2 CFR § 200.403(a) and § 200.405(a), only costs that are necessary, reasonable, and allocable to the federal program may be charged. Condition: The County overpaid the vendor by $25,170. The full amount of the invoice, including the overpayment, was charged to the federal award. The overpayment was not identified during the normal processing and payment of the invoice. Cause: The overpayment was due to an oversight during invoice processing. Effect: Federal funds were used to pay an amount not allocable to the program, resulting in $25,170 of unallowable costs charged to the federal award. Questioned Costs: $25,170 in Coronavirus State and Local Fiscal Recovery Funds. Context: We randomly selected tested fifteen (15) expenditures charged to the SLFRF program in the amount of $1,241,980 from a population of $1,292,822 and found one (1) instance of noncompliance totaling $25,170. Recommendation: We recommend that the entity seek reimbursement for the $25,170 overpayment and make appropriate adjustments to the Schedule of Expenditures of Federal Awards (SEFA) and the accounting records, as needed. Management should ensure final payment amounts are fully supported by invoice documentation. Views of Responsible Officials and Planned Corrective Actions: We agree with the findings and recommendations. This was an isolated incident whereas the payment amount was mistakenly pulled from the wrong line on a contractor’s pay application. This overpayment was missed in the subject fiscal year as the program was still active. Once the overpayment was identified, the county sought reimbursement from the vendor for the overpayment and has since received the funds. The reimbursement will be included as program revenues in the next audit report. The County will reconcile contract values as each pay application is processed in lieu of awaiting program/project closeout in the future.