FAC Explorer

Finding 1094397 (2023-012)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2025-01-07
Audit: 336226
Organization: Unified Government of Wyandotte County and Kansas City, Kansas (KS)
Auditor: Forvis Mazars

AI Summary

  • Core Issue: The Unified Government misused SAFER grant funds for overtime pay, violating their own policy against it.
  • Impacted Requirements: Internal controls under 2 CFR 200.303 were ineffective, leading to non-compliance with federal award terms.
  • Recommended Follow-Up: Review and strengthen controls around the SAFER grant to ensure compliance and prevent future misuse of funds.

Finding Text

U.S. Department of Homeland Security Staffing for Adequate Fire and Emergency Response (SAFER) - 97.083 Criteria or Specific Requirement – Material Weakness Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: It is the Unified Government's policy that no funding received through the Staffing for Adequate Fire and Emergency Response (SAFER) grant is to be utilized for overtime pay even when it is allowed under the grant. During testing of allowable costs, we identified instances in which funding was used for overtime pay. Questioned Costs: None noted. Context: We selected a sample of 40 charges to the SAFER grant of which, all were salaries and benefits expenditures. Within our sample, we noted three of the selections were overtime and were charged and allocated to the grant. These were determined to be allowable under the grant as it was for overtime that the fire department routinely pays as a part of the firefighter’s regularly scheduled and contracted shift hours to comply with the Fair Labor Standards Act (FLSA). This sample was not intended to be, and was not, a statistically valid sample. Identification of Prior Year Finding: 2022-013 Effect: The Unified Government's control surrounding overtime pay was not operating effectively and overtime was applied against the grant despite their internal policies and controls. Cause: The Unified Government's controls to not charge overtime did not operate effectively. Recommendation: We recommend that the Unified Government review its control structure surrounding the SAFER award document and ensure they are designed around compliance requirements and that they are operating effectively. Views of Responsible Official and Planned Corrective Actions: The reason for recurrence is the finding was communicated late in the prior year. Management will work with stakeholders so that only the allowed costs are used as the basis of the reimbursement packet. We have also created fencing around allowed costs and period of performance in our new ERP system.

Categories

Allowable Costs / Cost Principles Cash Management Material Weakness Period of Performance Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 517946 2023-006
    Significant Deficiency Repeat
  • 517947 2023-006
    Significant Deficiency Repeat
  • 517948 2023-007
    Material Weakness Repeat
  • 517949 2023-007
    Material Weakness Repeat
  • 517950 2023-008
    Material Weakness Repeat
  • 517951 2023-008
    Material Weakness Repeat
  • 517952 2023-009
    Material Weakness Repeat
  • 517953 2023-010
    Significant Deficiency Repeat
  • 517954 2023-011
    Significant Deficiency
  • 517955 2023-012
    Material Weakness Repeat
  • 517956 2023-013
    Significant Deficiency
  • 517957 2023-014
    Significant Deficiency
  • 1094388 2023-006
    Significant Deficiency Repeat
  • 1094389 2023-006
    Significant Deficiency Repeat
  • 1094390 2023-007
    Material Weakness Repeat
  • 1094391 2023-007
    Material Weakness Repeat
  • 1094392 2023-008
    Material Weakness Repeat
  • 1094393 2023-008
    Material Weakness Repeat
  • 1094394 2023-009
    Material Weakness Repeat
  • 1094395 2023-010
    Significant Deficiency Repeat
  • 1094396 2023-011
    Significant Deficiency
  • 1094398 2023-013
    Significant Deficiency
  • 1094399 2023-014
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $8.48M
14.218 Community Development Block Grants/entitlement Grants $2.01M
97.083 Staffing for Adequate Fire and Emergency Response (safer) $1.90M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $1.12M
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $1.12M
97.036 Covid-19 Disaster Grants - Public Assistance (presidentially Declared Disasters) $727,333
14.239 Home Investment Partnerships Program $665,856
16.710 Public Safety Partnership and Community Policing Grants $645,239
93.667 Social Services Block Grant $641,786
14.218 Covid-19 Community Development Block Grants/entitlement Grants $584,923
14.231 Emergency Solutions Grant Program $492,756
93.217 Family Planning_services $464,499
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $311,072
16.575 Crime Victim Assistance $301,819
93.052 National Family Caregiver Support, Title Iii, Part E $295,516
16.817 Byrne Criminal Justice Innovation Program $251,771
16.588 Violence Against Women Formula Grants $237,167
93.994 Maternal and Child Health Services Block Grant to the States $236,319
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $220,970
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $218,804
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $174,094
93.268 Immunization Cooperative Agreements $112,733
93.053 Nutrition Services Incentive Program $112,108
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $110,796
21.016 Equitable Sharing $103,480
93.630 Developmental Disabilities Basic Support and Advocacy Grants $102,547
93.069 Public Health Emergency Preparedness $101,961
20.200 Highway Research and Development Program $95,557
93.575 Child Care and Development Block Grant $95,527
16.590 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program $89,746
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $69,266
14.231 Covid-19 Emergency Solutions Grant Program $68,289
16.738 Edward Byrne Memorial Justice Assistance Grant Program $61,874
66.001 Air Pollution Control Program Support $50,688
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $47,665
15.904 Historic Preservation Fund Grants-in-Aid $42,106
93.778 Medical Assistance Program $38,883
93.991 Preventive Health and Health Services Block Grant $26,080
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $20,514
93.387 National and State Tobacco Control Program (b) $20,474
93.324 State Health Insurance Assistance Program $20,314
94.006 Americorps $18,318
93.071 Medicare Enrollment Assistance Program $13,943
95.001 High Intensity Drug Trafficking Areas Program $13,645
93.493 Congressional Directives $9,062
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $8,636
14.239 Covid-19 Home Investment Partnerships Program $7,702
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $1,740