Finding Text
Criteria: Non-federal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Disaster Grants - Public Assistance payments must be used for allowable expenses described in the grant agreement and specified in guidance issued by the U.S. Department of Homeland Security, Federal Emergency Management Agency (FEMA). Activities allowed and eligible costs have been outlines in the FEMA Public Assistance Program and Policy Guide, FP-104-009-2, April 2-18 (PAPPG) and FEMA COVID-19 Fact Sheets and Guidance. The purpose of the Public Assistance Grant Program as it relates to the COVID-19 pandemic is to provide funds for emergency protective measures ? actions taken to eliminate or lessen immediate threats to lives, public health, or safety related to the pandemic. Condition/Context: The Organization included expenses that did not meet criteria of an allowable expense as defined by the FEMA guidance. The Organization included $3,726 of testing supplies that were not related to COVID-19. This was not a statistically valid sample. Effect: The Organization claimed expenses that were not in accordance with established FEMA guidance and are therefore deemed unallowable. Cause: An error in the coding of certain testing supplies was not detected by the Organization?s internal control process. Recommendation: We recommend that management implement procedures to ensure that the most recent guidance is reviewed and understood and that information used in accumulating allowable expenses is reviewed, with errors addressed.