Finding 1164806 (2024-005)

2024-005- Vendor Records Federal Agency: U.S. Department of the Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Program Year: 2024 Assistance Listing Number: 21.027 Compliance: Allowable Costs/Cost Principles Finding Type: Significant deficiency in internal controls over compliance Criteria: All costs charged to a federal award must be adequately documented and supported. Condition: During the review of vendor invoices submitted for reimbursement, several instances were noted in which invoice amounts were not properly reduced for retainages that had not yet been paid. Cause of Condition: The District lacked a process to differentiate estimated versus actual costs included in vendor invoices. Effect of Condition: There is an increased risk that unallowable or inaccurate costs may have been charged to the federal program. Recommendation: It is recommended the entity implement procedures to ensure all invoiced amounts are supported with appropriate documentation. View of Responsible Officials and Planned Corrective Action: The District will instruct the operator to indicate on the invoice amounts held back for retainage to be paid at a later date when the work invoiced can be verified as complete. And will also adjust the requisitions to reflect only amounts actually paid. Planned Implementation Date of Corrective Action: October 2025 Person Responsible for Corrective Action: F.X. Flinn, Board Chair