Finding Text
Finding 2021-011- Noncompliance with Activities Allowed or Unallowed and Allowable Costs/Cost Principles Requirements - Coronavirus Relief Fund
PASS-THROUGH GRANTOR: Oklahoma Office of Management Enterprise Services
FEDERAL AGENCY: U.S. Department of the Treasury
ASSISTANCE LISTING: 21.019
FEDERAL PROGRAM NAME: Coronavirus Relief Fund
FEDERAL AW ARD NUMBER: SA-0098
FEDERAL AW ARD YEAR: 2021
CONTROL CATEGORY: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance
QUESTIONED COSTS: $260,134
Condition: During our test of thirty-seven (37) disbursements and 100% of the payroll disbursements that were submitted for Coronavirus Relief Fund reimbursements, the following was noted:
• One (1) payment was overstated by $50 when submitted to the U.S. Department of Treasury.
• Payroll expenses totaling $260,084 was determined to be ineligible due to expenses incurred outside the eligibility period.
Cause of Condition: Policies and procedures have not been designed and implemented to ensure compliance with federal award requirements.
Effect of Condition: This condition resulted in noncompliance with grant requirements.
Recommendation: OSAI recommends that the County designs and implements policies and procedures to ensure compliance with applicable grant requirements.
Management Response:
Chairman of the Board of County Commissioners: The Cleveland County Board of County Commissioners (BOCC) will implement policies and procedures to ensure compliance with applicable grant requirements. Specifically, the BOCC will ensure grant funds are expended on allowed costs as set forth by the grant.
Criteria: GAO Standards - Section 2 - Establishing an Effective Internal Control System - OV2.23 states in part:
Objectives of an Entity- Compliance Objectives
Management conducts activities in accordance with applicable laws and regulations. As part of specifying compliance objectives, the entity determines which laws and regulations apply to the entity. Management is expected to set objectives that incorporate these requirements.
Federal Register, Vol. 86, No.IO also states in part:
The CARES Act provides that payments from the Fund may only be used to cover costs that- 1. are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID--19).