FAC Explorer

Finding 553993 (2022-006)

Significant Deficiency Repeat Finding
Requirement
A
Questioned Costs
$1
Year
2022
Accepted
2025-04-03
Audit: 352633
Organization: California Fire Safe Council, Inc. (CA)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: Payroll charges to the grant exceeded actual hours worked, leading to overbilling.
  • Impacted Requirements: Costs must be necessary and reasonable as per 2 CFR 200.403(a).
  • Recommended Follow-Up: Enhance policies to ensure payroll aligns with actual hours worked, based on timesheets.

Finding Text

Federal Agency: United States Department of Commerce Federal Program Name: Office for Coastal Management Assistance Listing Number: 11.473 Federal Award Identification Year: 2020 Pass-Through Agency: National Fish and Wildlife Grant Agreement Award Period: 9/1/20-08/31/23 Type of Finding: Other Matters - Significant Deficiency in Internal Control Criteria: 2 CFR 200.403(a) - Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles. Condition: For two payroll samples that were selected, the amount of time charged to the grant was greater than the amount of time work was performed for the grant. As such, the program was overcharged. Context: A nonstatistical sample of 8 out of 48 payroll entries were selected for testing for the Office for Coastal Management program. The condition noted above was identified during our procedures over the CFSC’s allowable costs provisions. Effect: CFSC did not identify the error to be able to make the appropriate corrections before receiving reimbursement for incorrect payroll related expenditures. Cause: CFSC did not consistently ensure that the hours worked by each employee related to the federal program were accurate applying the cost to the grant. Repeat Finding: The finding is a repeat finding. Recommendation: We recommend that management strengthen its current policies and procedures to ensure that all payroll amounts applied to the grant were for actual hours worked based on employee timesheets. Management’s Views: See separate corrective action plan.

Corrective Action Plan

Management agrees with the finding and is implementing the accompanying corrective action plan. Views of Responsible Officials: Jacy Hyde, Executive Director Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Contact Person: Joel Rusco, Chief Financial and Administrative Officer Jessica Martinez, Deputy Director Corrective Action Plan: The corrective actions for this finding are identical to those outlined in finding 2022-004. Please refer to the correction action plan for finding 2022-004, which includes specific measures to address this finding. Anticipated Completion Date: These corrective actions will be fully implemented by the end of Quarter 2 of FY25.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 553991 2022-004
    Significant Deficiency Repeat
  • 553992 2022-005
    Significant Deficiency
  • 553994 2022-007
    Significant Deficiency Repeat
  • 553995 2022-008
    Material Weakness
  • 553996 2022-009
    Material Weakness Repeat
  • 553997 2022-010
    Material Weakness Repeat
  • 1130433 2022-004
    Significant Deficiency Repeat
  • 1130434 2022-005
    Significant Deficiency
  • 1130435 2022-006
    Significant Deficiency Repeat
  • 1130436 2022-007
    Significant Deficiency Repeat
  • 1130437 2022-008
    Material Weakness
  • 1130438 2022-009
    Material Weakness Repeat
  • 1130439 2022-010
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
11.473 Office for Coastal Management $685,222
10.698 State & Private Forestry Cooperative Fire Assistance $1,249
10.664 Cooperative Forestry Assistance $-86,652