Finding Text
Criteria: Costs charged to federal grant programs must follow the Uniform Guidance when determining if a cost is allowable under the program. One of the requirements is that a cost can only be funded by one program.
Condition: The City received reimbursement through the State of Louisiana’s Water Sector Program for expenditures that were already claimed through Coronavirus State and Local Fiscal Recovery Funds.
Cause: The City did not have proper controls in place to ensure that expenditures were not paid by multiple federal programs.
Effect: The City utilized federal funds to pay for expenditures that had already been charged to other grant programs.
Context: A sample of 10 transactions were selected for audit from a population of 16 disbursements. The test found that three disbursements had already been charged to other federal programs. It was determined that $2,570,501 was charged to other federal programs and are considered questioned costs.
Recommendation: The City should review policies and procedures to ensure that the City does not continue to request reimbursement for amounts that were received from other sources.
Management’s Corrective Action Plan: The City will implement policies and procedures to ensure that the City does not continue to request reimbursement for amounts that were received from other sources.