Finding Text
Identification of the federal program: 97.036 – Disaster Grants – Public Assistance
Significant deficiency in internal controls over allowable activities, allowable costs, and period of performance.
Criteria:
Proper oversight, review procedures, and controls should be established to ensure the amounts submitted for
equipment hours are adequately supported.
Condition:
Equipment hours were tracked by one individual within the Cooperative and no review or approval of the equipment hours occurred.
Cause:
There was a lack of review of equipment hours charged to the grant.
Effect:
The absence of proper review procedures increases the risk of errors, inaccuracies, or omissions in submitted
expenses.
Questioned Costs:
None
Recommendations:
The Cooperative should establish oversight and review procedures to ensure all equipment hours are properly
submitted by employees and reviewed by management prior to the submission of them for reimbursement.
Views of responsible officials:
The Controller captured the time associated with each piece of equipment via individual meetings with each
employee. Moving forward we have set up to have equipment usage captured within the timesheets by each
employee. Timesheets are then approved by the supervisor.