Finding Text
Finding 2022-002: Allowable Costs and Activities Identification of the Federal Program: Federal Equitable Sharing Program, ALN 16.922 Criteria: For the Equitable Sharing Program, ALN 16.922, under Allowable Costs and Activities, the 2022 Compliance Supplement states that ?program policy and procedures are set forth in the Guide to Equitable Sharing for State, Local, and Tribal Law Enforcement Agencies (Guide) (July 2018) as well as Equitable Sharing Wires (Wires). In the Guide at Part V, Section B(2)(i) lists as an impermissible use, ?Shared funds may not be used to purchase equipment or other permissible items for other law enforcement agencies?. At Part V, Section B(2)(e) the Guide states, ?Shared funds may not be used to pay for food and beverages (alcoholic or nonalcoholic)?? Condition: Condition 1: During 2022, Sumner County made two separate purchases of equipment for two separate law enforcement agencies (both city police departments within Sumner County) totaling $14,179.04. The equipment was billed to and received by the two other agencies, but paid from the County Equitable Sharing Program funds. Condition 2: The County made semi-monthly purchases of bottled water from a vendor totaling $178.75 from the Equitable Sharing Program funds. Cause: Condition 1: The department head responsible for determining compliance with this provision (County Attorney) was aware of the provision in Part V, Section B(2)(i) above, but was of the opinion that the cost was allowable because he was also the chief law enforcement officer of those agencies, those agencies operate within the county?s jurisdiction and that the purchases of equipment for these two other agencies also benefited the county?s law enforcement agencies. Condition 2: The department head was not aware of the prohibition that the purchase of food and beverages from the Equitable Sharing funds would apply to bottled water. There is not a secondary review for allowability of the cost or activity. For both conditions, the approving department head?s knowledge of the compliance requirements was the internal control which failed. Effect or Potential Effect: Denial or extinguishment of sharing requests; temporary or permanent exclusion from the Program; freeze on receipt and/or expenditure of shared funds; return of funds or offsets from future sharing. Questioned Costs: Actual and projected costs are in the amount of the two conditions noted above and are below the $25,000 reporting level under the Uniform Guidance for questioned costs. Context: There were only two purchases of equipment for other law enforcement agencies in the population of 2022 expenditures, both noted above. There were 17 purchases of bottled water with each between $5.00 and $19.80 totaling $178.75 in the population of expenditures. Recommendation: The approving department head should review the compliance requirements, including updated guidance available in the Wires publication, when new or unusual purchases are considered. Views of the Responsible Officials: The County Attorney concurs with the findings. The County will reimburse the Equitable Sharing Fund for $14,357.79, the amount of the nonallowable costs, from other county funds in 2023.