Finding Text
FINDING 2025‐003— ALLOWABLE COSTS/COST PRINCIPLES AND ACTIVITIES ALLOWED AND UNALLOWED—SIGNIFICANT DEFICIENCY IN INTERNAL CONTROLS OVER COMPLIANCE AND NONCOMPLIANCE FEDERAL PROGRAM: Coronavirus State and Local Fiscal Recovery Funds ASSISTANCE LISTING NUMBER: 21.027 YEAR(S): 2025 FEDERAL AGENCY: Department Of Treasury PASS‐THROUGH AGENCIES: State of Oregon and Multnomah County Criteria – Allowability of costs should be adequately documented in accordance with 2 CFR 200.403bullet point (g) Condition/Context – From an allowable cost sample of 60 selections, 2 selections were duplicated. Upon further investigation to quantify the error we noted expenses totaling $74,808 of non-payroll expenses were duplicated and improperly submitted for reimbursement. The associated indirect cost of $19,076 was also duplicated. Accordingly, total expenses that were subjected to the duplication error for the grant program was $93,884. Cause – When accumulating expenses for reimbursement management did not realize that they captured the same expense twice across the adjacent months. Effect - Unallowed or duplicate costs may be charged to the federal award without being identified by management. Questioned Cost - $93,884 Recommendation - Management should design and implement a control that prevents the duplication of expenses from being submitted for reimbursement. View of Responsible Officials - See Corrective Action Plan.