Finding Text
CONDITION: For the calendar year 2021, the City of McKeesport submitted a listing to the Department of Treasury, of eligible expenses for the Coronavirus State and Local Fiscal Recovery Federal Funding. This listing contained the ShotSpotter as referenced in Finding 2021-003 which was already reimbursed to the City as part of the Community Development Block Grant (CDBG) Program by the Department of Housing and Urban Development.
CRITERIA: In accordance with Section 2 CFR 200.412 of the Uniform Guidance, federal expenses are prohibited from being charged to more than one federal program.
CAUSE: It appears that there was a lack of communication between City personnel handling the reporting of federal funds expended to the various federal agencies as to which ones had already been claimed as eligible. The lack of reconciled detailed general ledger reporting for both the CDBT Grant Program and the ARPA Grant (SLFRF) Program most likely contributed to this oversight as well.
EFFECT: The City of McKeesport did not comply with the requirements of Section 2 CFR 200.412 of the Uniform Guidance, which prohibits federal expenses from being charged to more than one federal program.
QUESTIONED COST: $99,000
RECOMMENDATION: I am recommending that City management review this eligible expense charged to the Coronavirus State and Local Fiscal Recovery Federal Funding Program, concur that this is an expense that was already reimbursed by the Department of Housing and Urban Development for the benefit of the City’s CDBG Grant Program, and then remove this as an eligible expense for 2021 reporting purposes, and possibly replace with other eligible expenses not previously reported to the Department of Treasury.
VIEWS OF RESPONSIBLE OFFICIALS: The City concurs with the above noted finding and addresses this issue in the ‘Corrective Action Plan’ included within this report.