Finding 1080758 (2024-002)

Material Weakness
Requirement
AB
Questioned Costs
$1
Year
2024
Accepted
2024-10-31
Audit: 326872
Organization: City of Scott (LA)

AI Summary

  • Core Issue: The City improperly charged $248,060 in expenses to multiple federal programs, violating funding rules.
  • Impacted Requirements: Costs must adhere to the Uniform Guidance, ensuring no double funding from federal grants.
  • Recommended Follow-Up: The City should enhance controls and review policies to prevent future reimbursement requests for already funded expenses.

Finding Text

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.

Categories

Questioned Costs Cash Management

Other Findings in this Audit

  • 504316 2024-002
    Material Weakness
  • 504317 2024-003
    Material Weakness
  • 504318 2024-004
    Material Weakness Repeat
  • 504319 2024-005
    Material Weakness
  • 504320 2024-006
    Material Weakness
  • 504321 2024-007
    Material Weakness
  • 504322 2024-008
    Material Weakness Repeat
  • 504323 2024-009
    Material Weakness
  • 1080759 2024-003
    Material Weakness
  • 1080760 2024-004
    Material Weakness Repeat
  • 1080761 2024-005
    Material Weakness
  • 1080762 2024-006
    Material Weakness
  • 1080763 2024-007
    Material Weakness
  • 1080764 2024-008
    Material Weakness Repeat
  • 1080765 2024-009
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $620,500
97.039 Hazard Mitigation Grant $133,222
20.205 Highway Planning and Construction $24,315