FAC Explorer

Finding 31781 (2022-001)

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Requirement
AB
Questioned Costs
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Year
2022
Accepted
2023-07-11
Audit: 26078
Organization: City of Inver Grove Heights (MN)
Auditor: Abdo LLP

AI Summary

  • Core Issue: The City requested more payroll reimbursement than allowed by the grant, using estimates instead of actual costs.
  • Impacted Requirements: This violates the grant's requirement to only claim actual payroll costs incurred during the grant period.
  • Recommended Follow-Up: City staff should review grant guidelines and create a reliable process for accurate reimbursement requests.

Finding Text

2022-001 U.S. Department of Homeland Security Staffing for Adequate Fire and Emergency Response Activities Allowed or Unallowed and Allowable Costs Criteria: The Staffing for Adequate Fire and Emergency Response grant requires grantees to request reimbursement for payroll costs incurred during the applicable grant period. Condition: During the course of our engagement, we noted the City requested grant reimbursement for a greater amount of payroll costs then what was actually incurred during applicable grant periods. Cause: Staff requesting reimbursement of the grant used estimated payroll costs for reimbursement requests, instead of the actual payroll costs. Effect: The City is out of compliance with the grant program and received a greater amount of funds then what was allowable. Recommendation: We recommend City staff review the grant requirements and determine a process for properly requesting reimbursement. Management Response: Management is working on establishing a process for submitting reimbursement requests.

Corrective Action Plan

2022-001 U.S. Department of Homeland Security Staffing for Adequate Fire and Emergency Response Activities Allowed or Unallowed and Allowable Costs The Staffing for Adequate Fire and Emergency Response grant requires grantees to request reimbursement for payroll costs incurred during the applicable grant period. During the course of our engagement, we noted the City requested grant reimbursement for a greater amount of payroll costs then what was actually incurred during applicable grant periods. CORRECTIVE ACTION PLAN (CAP): Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Action Planned in Response to Finding: Management is aware of the compliance issue and will implement the suggested procedures. Official Responsible for Ensuring CAP: Amy Hove, Finance Director, would be responsible for procedures. Planned Completion Date for CAP: Procedures will be implemented in the current fiscal year. Plan to Monitor Completion of CAP: The finance department will review reimbursement requests and ensure compliance. Sincerely, Amy Hove Finance Director

Categories

Allowable Costs / Cost Principles Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
97.083 Staffing for Adequate Fire and Emergency Response (safer) $896,122
21.027 Coronavirus State and Local Fiscal Recovery Funds $122,430
20.600 State and Community Highway Safety $3,768
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $1,700
20.616 National Priority Safety Programs $694