Finding Text
Federal Agency: U.S. Department of Treasury
Federal Program Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Federal Award Program Year: January 1, 2023 – December 31, 2023
Pass-Through Agency: Indiana Finance Authority
Pass-Through Number: Unknown
Type of Finding:
• Noncompliance
Criteria or Specific Requirement – Allowable Costs/Activities: Pursuant to the restrictions set forth Division LL, Section 103 of the Consolidated Appropriations Act, 2023, Treasury’s Interim Final Rule and Final Rule at 31 CFR Part 35, and frequently asked questions addressed by the Treasury, recipients must demonstrate that costs incurred are allowable under the relevant statutory provisions and consistent with the purpose of the State and Local Fiscal Recovery Funds. Recipients are allowed to use funds to respond to the public health and negative economic impacts of the pandemic, replace lost public sector revenue, provide premium pay for essential workers and invest in water, sewer and broadband infrastructure. Activities unallowed include those that are an offset as a reduction in net tax revenue, deposits into pension funds, debt service or replenishing financial reserves, satisfaction of settlements and judgments and programs, services or capital expenditures that undermine efforts to stop the spread of COVID-19.
Condition: Expenditures were identified in relation to activities allowed or unallowed and allowable costs compliance requirements that were not allowable under the grant.
Questioned Costs: Questioned costs totaling $190,000.
Context: Out of a population of 73 expenditures, 8 were selected for testing. There was one error identified in testing in which $60,000 was paid for an unallowable settlement payment. Our sample was not intended to be statistically valid.
Effect: Nonallowable costs were charged to the grant.
Cause: Failure to maintain sufficient review of the allowable costs or activities being charged to the grant.
Identification as a Repeat Finding: No
Recommendation: We recommend that the County consider reviewing the guidance regarding the allowable costs and activities.
Views of Responsible Officials and Planned Corrective Action: The County is aware of the compliance requirement and has implemented additional procedures, including a thorough review of the compliance requirements.
Persons responsible for implementing: Abby Doyle, Chief Deputy Auditor
Anticipated completion date: Completed.