Finding 501047 (2023-004)

Federal Program Disaster Grants – Public Assistance (97.036) Federal Award Number and Year – FEMA-4660-DR, 2022 & FEMA-4717-DR, 2023 Allowable Costs/Activities Allowed/Period of Performance Significant Deficiency Criteria A system of internal controls requires approval of all items expended that are used for grant purposes. Condition During testing, we noted 1 material charge-out transaction where the item taken out of inventory was not supported with a signed requisition slip. Cause Lack of oversight by management. Questioned Costs None Context We selected 40 transactions to test in a population of over 250. 3 of these transactions were for materials being taken out of inventory. One of these tests, we noted there was not a signed requisition slip for the removal of this item from inventory. Our sample was not statistically valid. Effect The County could have submitted inaccurate expenses for grant reimbursement. Repeat Finding No Recommendation The county should follow their procedures of using requisition slips when it comes to removing materials out of inventory. Views of Responsible Officials See Corrective Action Plan.