Finding 519905 (2024-001)

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Epidemiology and Laboaratory Capacity for Infectious Disease (ELC) Enhancing Detection; Epidemiology and Laboaratory Capacity for Infectious Disease (ELC) Enhancing Detection Expansion Assistance Listing Number: 93.323 Pass-Through Agency: California State Department of Public Health Pass-Through Number(s): COVID-19ELC27; COVID-19ELC85 Award Period: May 18, 2020 – July 31,2026 Type of Finding:  Material Weakness in Internal Control over Compliance  Other Noncompliance Criteria: The total personnel costs for time allocated to the program should be consistent with the underlying general ledger details or other detailed payroll reports. Condition: The engagement team found that the March 2024 ELC Enhancing Detection Expansion Invoice overstated payroll expenditures by reporting the entire quarter instead of just March, resulting in double-reporting. The internal controls for approving invoices before they were sent to the grantor were not adequately designed or implemented to ensure compliance with the Allowable Cost requirements of the grants. Questioned Costs: Known Actual Overstated Payroll Expenditures of $296,156. Context: CLA found the following: Six of forty payroll expenditures selected for testwork did not agree to underlying supporting documentation for the expenditures. These discrepancies were specifically noted in the payroll expenditures for March 2024. Cause: Mangement did not properly review the ELC Enhancing Detection Expansion Invoice for March 2024 for accuracy prior to submission. Effect: The County did not meet the criteria for proper grant reporting of allowable costs. Payroll expenditures charged to the program were overstated. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends that the County review and update its internal controls related to the ELC grants and provide additional training to ELC staff on compliance with allowable cost and reporting requirements. Proper supervision and review should ensure accurate cost preparation for reimbursement invoices. ELC staff to provide reconciliation to ledger to support SEFA. Views of responsible officials: There is no disagreement with the audit finding.