Finding 498466 (2023-001)

Finding Number: 2023-001 Activities Allowed or Unallowed; Allowable Costs/Cost Principles Information on Federal Program: United States Department of the Treasury • ALN Number: 21.019 • ALN Name: Coronavirus Relief Fund • Contract Periods: August 9, 2022 – December 31, 2024 (County of Cook, Illinois); June 16, 2023 – June 16, 2024 (City of New Orleans, Louisiana) Criteria - The Uniform Guidance Section §200.403(g) states that for costs to be allowable under federal awards, they must be adequately documented, and there must be sufficient documentation. Condition - During our testing of personnel costs, we noted that the retroactive payment for two samples that was expensed within one month was not properly allocated across previous months based on hours worked for the program in those months. Questioned Costs - Not determinable. Context - This is a condition identified per our compliance testing of personnel costs. Cause - Policies and procedures were not appropriately adhered to in certain instances to ensure that the retroactive pay was properly allocated across previous months. Effect or Potential Effect - We were unable to confirm the allowability, validity, and completeness of the expenses. Recommendation - We recommend that the Organization ensures its policies and procedures are followed on a consistent basis. Views of Responsible Official: The Organization agrees with the finding. The Organization continues to take steps to improve this process. See the Organization’s further response to this finding as described in the accompanying management’s planned corrective actions, Appendix A.