Finding Text
Finding 2024-003 – Allowable Costs Federal Agency: U.S. Department of Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds AL Number: 21.027 Pass-through: City of Columbus Award Number: 2576-2021 Award Year: 10/18/2021 – 12/31/2026 Type of Finding: Material Weakness and Noncompliance Criteria: Per 2 CFR 200.403, Costs charged to federal awards must be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles. In addition, they must not be included as a cost or used to meet cost-sharing requirements of any other federally-financed program in either the current or a prior period. Condition: The controls in place were not sufficient to ensure costs submitted for reimbursement were complete and accurate. Context: The Association included the same payroll costs to two different invoices (requests for cost reimbursement) for the ARPA Relocation subgrant passed through the City of Columbus. These two invoices were submitted and recorded as revenue in 2024 and consist of costs incurred in 2023 and 2024. The payroll costs submitted in the first invoice totaled $107,668 while the second invoice contained payroll costs of $119,120. The difference between those amounts represents additional payroll costs for one employee for pay dates between May and June 2024. Cause: The underlying cause was due to an oversight of the disbursement journal reviewer. Effect: The Association submitted a duplicate invoice for payroll expenditures that were already reimbursed. Questioned costs: $107,668 Identification of how questioned costs were computed: See explanation provided in the Context. Repeat finding: No. Recommendation: The Association should review its policies and procedures to ensure the same costs are not duplicated among different invoices submitted for cost reimbursement. Views of responsible officials: See Corrective Action Plan