Finding 1169749 (2023-002)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2026-01-20

AI Summary

  • Core Issue: Invoices were submitted for reimbursement under two federal programs, violating compliance rules on allowable costs.
  • Impacted Requirements: Costs must not be claimed for reimbursement from multiple federal sources for the same expense.
  • Recommended Follow-Up: Implement regular training for grant managers on federal award requirements to prevent future compliance issues.

Finding Text

Identification of the Federal Program - Assistance Listing Number 21.027 - Coronavirus State and Local Fiscal Recovery Funds, United States Department of Treasure, Pass-Through Entity: Mississippi Department of Environmental Quality. Criteria - Uniform Guidance compliance requirement for allowable cost/cost principles states for costs to be allowable under federal awards they must not be included as a cost or used to meet cost-sharing or matching requirements of any other federally financed program in either the current or prior period. Condition - Invoices were submitted for reimbursement under two federally financed programs. Cause - Management was aware amounts could not be submitted for reimbursement under two separate programs but followed the inaccurate advice of an external party. Effect - Potential material noncompliance with federal award compliance requirements. Questioned Costs - There are no questioned costs associated with the finding. There were sufficient additional project expenditures that were eligible for submission for reimbursement under the federal program. Context - Management was provided incorrect guidance by contracted engineer assigned to oversee state federal award program. Repeat Finding - This is not a repeat finding. Recommendation - We recommend the City implement regular training for grant managers and financial staff on federal award requirements. Training should include principles of allowability of costs under federal awards, the importance of ensuring each expense is only reimbursed once, and processes fo reviewing and reconciling expenses across multiple federal awards to prevent overlap or duplicate reimbursement requests. View of Responsible Officials and Planned Corrective Actions - The City understands the need for this finding, however, the City was instructed by Horne (The State's Grant Administrator for the MCWI Grant) to upload all reciepts into their online portal. They did not provide a way on the website to differentiate invoices. The City knows it cannot submit reciepts for reimbursement from two Federal grants, but this is what the Grant Administrator for the State of Mississippi instructed city staff to do in order to receive the reimbursement from the MCWI Grant

Corrective Action Plan

The City will continue to work with the grant administrator who is managing the grant for the funding agency. The Administration will only submit invoices once for reimbursement and identify which invoices are local funding versus grant funding to avoid this in the future.

Categories

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Subrecipient Monitoring Cash Management

Other Findings in this Audit

  • 1169750 2023-004
    Material Weakness Repeat
  • 1169751 2023-003
    Material Weakness Repeat
  • 1169752 2023-004
    Material Weakness Repeat
  • 1169753 2023-003
    Material Weakness Repeat
  • 1169754 2023-004
    Material Weakness Repeat
  • 1169755 2023-003
    Material Weakness Repeat
  • 1169756 2023-004
    Material Weakness Repeat
  • 1169757 2023-003
    Material Weakness Repeat
  • 1169758 2023-004
    Material Weakness Repeat
  • 1169759 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $287,650
15.622 SPORTFISHING AND BOATING SAFETY ACT $100,009
15.605 SPORT FISH RESTORATION $82,125
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $81,877
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $50,268
81.052 ENERGY CONSERVATION FOR INSTITUTIONAL BUILDINGS $30,878
16.922 EQUITABLE SHARING PROGRAM $22,147
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $18,211
20.205 HIGHWAY PLANNING AND CONSTRUCTION $14,558
20.314 RAILROAD DEVELOPMENT $13,596
20.607 ALCOHOL OPEN CONTAINER REQUIREMENTS $5,239