Finding 236264 (2022-003)

-
Requirement
C
Questioned Costs
$1
Year
2022
Accepted
2023-07-02

AI Summary

  • Core Issue: The District submitted a reimbursement request for $372,596 before paying the costs, violating 2 CFR section 200.305(b)(3).
  • Impacted Requirements: Compliance with cash management rules is essential to avoid questioned costs and potential noncompliance.
  • Recommended Follow-Up: Implement policies to ensure reimbursement requests align with the requirement of paying costs before submission.

Finding Text

2022-003 Cash Management U.S. Department of the Interior (passed through the State of Louisiana?s Coastal Protection and Restoration Authority) CFDA 15.435, Gulf of Mexico Energy Security Act (GOMESA) Criteria: Per 2 CFR section 200.305(b)(3), under the reimbursement method, program costs must be paid by non-Federal entity funds before submitting a payment request. Condition: The District submitted a reimbursement request that was in violation of 2 CFR section 200.305(b)(3) as described in the criteria above. Context/Questioned Costs: The District requested $372,596 of reimbursement on a reimbursement request that was submitted prior to payment of the costs by the District. We consider the total of $372,596 to be questioned costs. Cause: Inconsistent application of cash management compliance requirement. Effect: Possible noncompliance with cash management compliance requirements could result in costs being allowed by the granting agency. Recommendation: Policies and procedures should be implemented to ensure that reimbursement requests are submitted based on the requirement outlined in 2 CFR 200.305(b)(3). Views of Responsible Officials and Planned Corrective Actions: This information is in the District?s separate Management?s Corrective Action Plan for Current Year Findings.

Corrective Action Plan

2022-003 Cash Management Management?s Response and Planned Corrective Action: Management will monitor reimbursement requests to insure that payments have been made to vendors prior to submitting the reimbursement request. Name and Title of Contact Person: Timothy Matte, Executive Director

Categories

Questioned Costs Cash Management Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 236263 2022-001
    Material Weakness Repeat
  • 812705 2022-001
    Material Weakness Repeat
  • 812706 2022-003
    -

Programs in Audit

ALN Program Name Expenditures
15.435 Gomesa $14.54M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $544,315