Finding 1077489 — 2023-004

AI Summary

Core Issue: A significant deficiency in internal controls was found due to a lack of a signed requisition slip for a material charge-out transaction.
Impacted Requirements: All expenditures for grant purposes must be approved and documented properly.
Recommended Follow-Up: Ensure adherence to procedures by requiring requisition slips for all inventory removals.

Finding Text

Federal Program Disaster Grants – Public Assistance (97.036) Federal Award Number and Year – FEMA-4660-DR, 2022 & FEMA-4717-DR, 2023 Allowable Costs/Activities Allowed/Period of Performance Significant Deficiency Criteria A system of internal controls requires approval of all items expended that are used for grant purposes. Condition During testing, we noted 1 material charge-out transaction where the item taken out of inventory was not supported with a signed requisition slip. Cause Lack of oversight by management. Questioned Costs None Context We selected 40 transactions to test in a population of over 250. 3 of these transactions were for materials being taken out of inventory. One of these tests, we noted there was not a signed requisition slip for the removal of this item from inventory. Our sample was not statistically valid. Effect The County could have submitted inaccurate expenses for grant reimbursement. Repeat Finding No Recommendation The county should follow their procedures of using requisition slips when it comes to removing materials out of inventory. Views of Responsible Officials See Corrective Action Plan.

Categories

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Cash Management Period of Performance Significant Deficiency Equipment & Real Property Management

Other Findings in this Audit

501047 2023-004

Significant Deficiency

501048 2023-005

Material Weakness Repeat

1077490 2023-005