Finding 480089 (2023-002)

Department of Treasury Pass-through County of Warren, Kentucky; Coronavirus State and Local Fiscal Recovery Funds (LSFRF) - Assistance Listing No. 21.027; Grant period - Year ended December 31, 2023 Criteria and Condition: 2 CFR 200.303 requires the non-federal entity to establish and maintaineffective internal controsl over compliance with Federal staues, regulations, and the terms and conditions of the Federal award including proper tracking of grant expenditures for compliance. 31 CFR Part 35.5(a) defines the period of performance for the Coronavirus State and Local Fiscal Recovery Funds grant as beginning on March 3, 2021. The District's processes over approving allwoable costs in the proper period of performance could be enhanced as costs were charged to the Coronavirus State and Local Fiscal Recovery Funds grant that fell outside of the proper period of performance. Cause: Certain internal controls were not in place to prevent costs from outside of the proper period of performance from being charged to the grant. Effect: The cost of the assistance may be disallowed. Questioned Costs: $3,670 Context: Transactions prior to March 3, 2021 were identified in test work. The full amount of these costs charged to the program was determined to be $3,670. Recommendation: The District should enhance the review of costs prior to being transferred or charged to the grant to ensure it includes a review for proper period of performance. Viewes of Responsible Officials and Planned Corrective Actions: The District concurs with the finding, see corrective action plan