Finding 1099116 (2021-016)

Material Weakness
Requirement
AB
Questioned Costs
$1
Year
2021
Accepted
2025-02-11
Audit: 341985
Organization: Ottawa County (OK)

AI Summary

  • Core Issue: The County received $477,097 in reimbursements for payroll costs that were deemed unallowable under the grant agreement for COVID-19 relief.
  • Impacted Requirements: Noncompliance with federal grant requirements due to inadequate policies and procedures for managing allowable costs.
  • Recommended Follow-Up: The County should develop and implement clear policies to ensure understanding and compliance with all grant requirements to avoid future funding issues.

Finding Text

PASS-THROUGH GRANTOR: Oklahoma Department of Emergency Management and Oklahoma Office and Management and Enterprise Services FEDERAL AGENCY: U.S. Department of Treasury ASSISTANCE LISTING: 21.019 FEDERAL PROGRAM NAME: Coronavirus Relief Fund FEDERAL AWARD NUMBER: Oklahoma CARES PPE; 4530-DR-OK; SA-2242 FEDERAL AWARD YEAR: 2021 CONTROL CATEGORY: Activities Allowed or Unallowed and Allowable Costs/Costs Principles QUESTIONED COSTS: $477,097 Condition: Upon inquiry, review, and testwork of 100% of major program expenditures, the following exceptions were noted: • The County was reimbursed $477,097 for payroll expenditures which were determined to be unallowable costs to mitigate or prevent the spread of COVID-19 as required by the grant agreement. Cause of Condition: Policies and procedures have not been designed and implemented to ensure that the compliance with applicable grant requirements. Effect of Condition: These conditions resulted in noncompliance with federal grant requirements. This could hinder the County from receiving future federal funding and could result in the repayment of grant funds to the grantor agency. Recommendation: OSAI recommends the County gain an understanding of requirements for this program and design and implement policies and procedures to ensure compliance with all applicable grant requirements. Management Response: District 1 County Commissioner: Ottawa County has designed and implemented policies and procedures to ensure compliance with all applicable grant requirements. District 2 County Commissioner: I was not in office at this time. This was a one-time grant. District 3 County Commissioner: I did not take office until January 2023; however, District 3 will work to better understand all requirements of federal programs and implement better procedures to follow all guidelines and ensure compliance. Criteria: 2 CFR § 200.403 - Factors affecting allowability costs states in relevant part, Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: (g) Be adequately documented. 42 United States Code § 801 – Coronavirus relief fund Section 801(d) requires the States, Tribal governments, or units of local government use the funds received to cover only those costs that (1) are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19); (2) were not accounted for in the budget most recently approved as of March 27, 2020, for the State or government; and (3) were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 522672 2021-017
    Material Weakness
  • 522673 2021-018
    Material Weakness
  • 522674 2021-016
    Material Weakness
  • 1099114 2021-017
    Material Weakness
  • 1099115 2021-018
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $919,176
20.205 Highway Planning and Construction $29,639
16.034 Coronavirus Emergency Supplemental Funding Program $23,452