FAC Explorer

Finding 403485 (2023-001)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-06-27
Audit: 310550
Organization: Medford Water Commission (OR)
Auditor: Isler CPA

AI Summary

  • Core Issue: Three internal time charges billed to the loan did not match approved work rates due to a clerical error.
  • Impacted Requirements: Costs must comply with 2 CFR 200, avoiding improper payments and ensuring accuracy in billing.
  • Recommended Follow-Up: Review and document all rate changes in the accounting system to prevent future discrepancies.

Finding Text

Assistance Listing Number: 66.958 Federal Agency: Environmental Protection Agency Federal Award Year: 2019 Program Title: Water Infrastructure Finance and Innovation (WIFIA) Repeat finding: No Criteria: Under 2 CFR 200, costs must not consist of improper payments, including payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements. Condition: A selection of 60 internal time charges billed to the loan were selected for testing. Of these, 3 did not match Medford Water Commission approved work rate schedules amounts. All three discrepancies related to the same employee. Cause: Clerical error in rate entry within accounting system. Effect: Drawdowns requested on loan included unallowable costs related to amounts charged for work performed by Medford Water Commission. Known questioned costs are $514. Estimate of likely questioned costs is $20,965. Estimate of likely questioned costs was calculated by projecting the known error rate to the remaining population. Recommendation: Rate changes made in system should be reviewed and documented. Response:Management concurs with this finding

Corrective Action Plan

The rates included in the budget document play a crucial role in the preparation and approval of the budget. It is the accountant's responsibility to accurately enter these rates into the financial system every year. Once entered, a senior accountant will review the recorded rates to ensure their completeness and accuracy. The review process will be documented and approved to maintain accountability and prevent or detect future clerical errors. This applies to all changes in rates or additions.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 979927 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
66.958 Water Infrastructure Finance and Innovation $30.46M
97.036 Disaster Grants - Public Assistance $188,604