Finding 52100 (2022-002)

2022-002 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) - 93.323 Condition During testing, it was discovered that food and beverage expenditures were reimbursed under the program. Context Three sample items tested were for the purchase of food and beverages, and the known questioned costs are $88. Total estimated questioned costs are $176. Recommendation We recommend that the County review its procedures and implement controls to ensure that expenditure allowability is properly determined. Action Taken We take our responsibilities very seriously to ensure eligibility of costs charged to grants and we do have processes to ensure eligibility of claimed expenses. We have good communication with our granting agencies as we fulfill the grant responsibilities. For food and beverage costs we had corresponded with the granting agency on allowability of certain types of food or beverage and were informed of such items being eligible. Although we believed at the time that the $88 of food and beverage cited as a deficiency in the major program sample would therefore be eligible to charge to the grant, we agree now that our interpretation was in error, and we had not really obtained clarity on that specific matter. Based on discussions with our audit firm and further correspondence with the granting agency, as of the date of this notice, we will not be charging to the grant such food and beverage costs as were cited as a deficiency and we will exercise additional diligence when there might be differences of interpretation of the guidance.