Finding 1167286 (2024-001)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2024
Accepted
2025-12-30

AI Summary

  • Core Issue: Incorrect labor hours were recorded on the project worksheet due to a lack of matching with employee timesheets.
  • Impacted Requirements: Compliance with internal control standards under 2 CFR section 200.303(a) was not maintained.
  • Recommended Follow-Up: Review timesheets for accuracy and implement a second-level review process to enhance oversight.

Finding Text

Incorrect equipment hours used on the project worksheet submission Compliance Requirement: Allowable Costs/Cost Principles Condition/Criteria: The recipient and subrecipient must: Establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. (2 CFR section 200.303(a)). Cause: The Cooperative personnel did not match the labor hours from employee timesheets to the project worksheet. Effect: Incorrect hours were recorded on the project worksheet. The errors noted did not result in material known or likely questioned costs required to be reported. Recommendation: Review timesheets to ensure they agree to the hours reported on the project worksheet. Implement a second level of review by another employee so the individual tasked with preparing the project worksheet is not performing the review.

Corrective Action Plan

The Cooperative submitted the reimbursement request to the Federal Emergency Management Agency (FEMA) for equipment costs based on a conservative (less cost) approach using actual mileage costs. The hourly data submitted to FEMA was identified as not used for the reimbursement request. This information was only provided to demonstrate that the mileage-based cost was less than the hourly calculation. The hourly reimbursement data was a draft and it was indicated that the costs for aerial/digger equipment units were not included. FEMA opted to change the request to use the hourly calculation just prior to the submission deadline leaving no time for further discussion or analysis. A fully completed hourly based cost reimbursement request would have resulted in a higher requested amount and the hourly variance identified would have been negligible. Any future submissions will be based on the hourly approach and will be thoroughly reviewed.

Categories

Allowable Costs / Cost Principles Subrecipient Monitoring Equipment & Real Property Management

Other Findings in this Audit

  • 1167287 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $849,359