Finding 479033 (2023-001)

Finding: Allowable Costs Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Sponsoring Agency: Department of Treasury Sponsoring Award Number: None provided Award Year: 2021 "Criteria: Per the Coronavirus State and Local Fiscal Recovery Fund (SLFRF) Final Rule and Frequently Asked Questions, recipients may use SLFRF funds for various reasons including respoinding to the Public Health Emergency and negative economic impacts from the pandemic, which includes bolstering the public sector capacity and workforce such as payroll and covered benefits for employees of a recipient government for the portion of the employee's time spent responding to COVID-19. " Condition: The City of Aurora (the City) charged payroll and benefits for one employee subsequent to time in which the employee no longer was working on COVID-19 related projects for the City. Questioned Costs: $22,602 Context: The City charged three employees payroll and benefits to the SLFRF program for at total of $299,169. We compared 100% of the payroll to underlying employee contracts and cost allocation reports and noted one employee's payroll and benefits should have been charged to the SLFRF program from January to September 9, 2023, however all payroll through December 2023 was charged to the program. Effect: Unallowable costs were charged to the SLFRF program. Failure to ensure compliance with federal requirements for the SLFRF program program requirements could result in disallowed costs and federal sanctions, including the termination of the federal program. Cause: The City did not have proper internal controls in place to identify and communicate the change in employees job duties. In addition, the City's time and effort certifications happen on an annual basis which does not provide adqueate time to correct changes in employees job functions/allocations of cost. Identification as a repeat finding: Not Applicable Recommendation: We recommend City staff implement internal controls to identify changes in employee job duties and allocations of costs. In addition, we recommend the City increase the frequency of time and effort certifications in order to identify changes on a more timely basis. Views of Responsible Officials and Planned Corrective Actions: The City agrees with the finding. See separate report for planned corrective actions.