Finding Text
2024-06- 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 control over compliance and noncompliance Criteria: Costs charged to a federal award must be necessary, reasonable, allocable, and adequately documented. Duplicate charges for the same goods or services are unallowable. Condition: During testing of expenditures charged to the grant, an instance was identified in which the same invoice in the amount of $22,006 was charged twice to the grant.Cause of Condition: The duplication occurred due to a lack of sufficient review procedures. The accounting system did not flag the duplicate entry, and no secondary review was conducted to detect the error. Effect of Condition: Federal expenditures reported were overstated by $22,006. This resulted in an unallowable cost being charged to the grant. Questioned Costs: $22,006 Recommendation: It is recommended that the District implement stronger internal controls including reviews of grant expenditures. The District should also ensure the unallowable cost is removed from the grant and reimbursed to the federal agency as necessary. View of Responsible Officials and Planned Corrective Action: The accounting software used for the District’s financial records failed to flag a duplicate invoice (#310725) in this instance. The District will remove these costs on a subsequent submission for reimbursement. Planned Implementation Date of Corrective Action: Next request for reimbursement Person Responsible for Corrective Action: F.X. Flinn, Board Chair