Finding 1131732 (2024-004)

Material Weakness
Requirement
AB
Questioned Costs
$1
Year
2024
Accepted
2025-04-17
Audit: 353928
Organization: Town of Port Barre (LA)
Auditor: Kolder Slaven

AI Summary

  • Core Issue: The Town improperly charged costs to federal grants that were already funded by other programs.
  • Impacted Requirements: Costs must comply with the Uniform Guidance, which prohibits funding the same expense from multiple sources.
  • Recommended Follow-Up: The Town should enforce new policies to prevent double charging of expenditures to federal programs.

Finding Text

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 Town requested reimbursement for costs related to its water improvement project from the Coronavirus State and Local Fiscal Recovery Funds that were already requested for reimbursement from the State of Louisiana's Water Sector Program and Delta Regional Authority Funds The Town did not have proper controls in place to ensure that expenditure was not paid by multiple federal programs. The Town utilized federal funds to pay for expenditures that had already been requested for reimbursement from other federal programs. Context A sample of 10 disbursements were selected for audit from a population of 10 disbursements. The test found that four disbursements had already been charged to other federal programs. It was determined that $656,432 was charged to other federal programs and are considered questioned costs. Recommendation The Town should implement policies and procedures to ensure that expenditures are not charged to multiple federal programs. Views of Responsible Officials and Planned Corrective Action The Town agrees with the finding and has established policies and procedures to ensure that expenditures are only charged to one federal program.

Categories

Questioned Costs Cash Management

Other Findings in this Audit

  • 555290 2024-004
    Material Weakness
  • 555291 2024-006
    Material Weakness
  • 555292 2024-005
    Material Weakness
  • 555293 2024-007
    Material Weakness
  • 555294 2024-004
    Material Weakness
  • 555295 2024-006
    Material Weakness
  • 1131733 2024-006
    Material Weakness
  • 1131734 2024-005
    Material Weakness
  • 1131735 2024-007
    Material Weakness
  • 1131736 2024-004
    Material Weakness
  • 1131737 2024-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $737,089
90.201 Delta Area Economic Development $491,090