Finding Text
2024-004 - Allowable Cost/Cost Principles
Federal Program Information:
Department of Treasury - State & Local Fiscal Recovery Fund
ALN - 21.027 - State & Local Fiscal Recovery Fund
Criteria: The following CFR(s) apply to this finding: 2 CFR §200.303
Condition: During our testing of 9 disbursements under the State & Local Fiscal
Recovery Funds, we noted that 4 disbursements totaling $460,844 were approved
without following the City’s documented internal control procedures. Specifically, the
City’s policy requires documenting the approval of invoices, but this process was not
followed for the identified transactions.
Cause: The control lapse occurred because there was turnover in key positions.
Effect: By not following its own internal control procedures, the City increased the risk of
unallowable or unsupported costs being charged to the program. Although we did not
identify any unallowable costs in the items tested, the absence of proper approvals
diminishes assurance that expenses are appropriate and compliant.
Identification of Questioned Costs: None identified.
Context: The entire population of 12 months of reimbursements from the fiscal year
were examined which is a statistically valid sample.
Repeat Finding: This is not a repeat finding.
Recommendation: It is recommended that the City implement internal control processes
and procedures to ensure that all invoices are approved per the City’s policy.
Views of Responsible Officials and Corrective Action Plan: Please see the Corrective
Action Plan issued by the City.