Finding 526305 (2024-001)

Finding ALN 11.307 During testing of the Economic Adjustment Assistance (ALN 11.307) grant two issues were noted. The federal expenditure amount was reported incorrectly on the SEFA provided by Louisville Metro and information in the loan payment system was incorrect for two written off loans. The amount reported on the SEFA was $1,501,755. The correct federal expenditure amount is $3,072,347. An adjustment to the SEFA was made to correct the federal expenditure amount. The loan payment for the written off loan, Barbie Bac’z, did not follow the order of priority. The METCO Board approved $14,699 to be written off for The Limbo LLC per the 12/14/23 METCO memo. However, the amount on the grant portfolio that was written off was $14,577. The difference between the minutes and the grant portfolio is $122. “We recommend communication between the OMB Grants division and the agency handling a federal grant be improved to ensure the SEFA is accurate. Auditor’s Recommendation We recommend management periodically reconcile the RLF loan system to catch errors before too much time has passed and make corrections when needed. We recommend that management correct the next semi-annual report and the information used to prepare the chart attached to the semi-annual report is for the correct fiscal year.” Management Response Management concurs with the auditors’ finding and recommendation. Metro Government will implement controls for periodic reconciliation of the RLF loan system to catch errors before too much time has passed in addition to a year-end review for a secondary supervisor and management review to ensure an accurate outcome before submission for audit review. Anticipated Completion Date Periodic Reconciliation of RLF program quarterly beginning April 1, 2025 Annual Review to be completed by July 15 for fiscal year ending June 30 Contact Responsible For Corrective Action Richard Champion Louisville Metro Finance Director (502) 574-1881