Finding Text
Finding 2022-001: Allowable Costs Material weakness in internal controls over compliance with Activities Allowable and Allowable Cost and Noncompliance U.S. Department of Treasury; Coronavirus State Local Fiscal Recovery Funds (SLFRF) passed through Fresno County. AL No. 21.027. Questioned Cost: $2,000,000 How the Questioned Cost was Computed: The Fresno County Fire protection District (FCFPD) represented to Fresno County that they responded to approximately 13,339 calls during the period of March 1, 2021 and March 1, 2022 and that approximate 3,170 of those calls were for in-home life-threatening medical emergencies. That calculates to 23.76% of the total calls being for in-home life-threatening medical emergencies. The total cost of payroll during that time was $20,188,934 and the total cost of fuel was $298,358. The District used the Computer Aided Dispatch (CAD) System to accumulate the information used in the calculation of the calls for service and to determine the number of the calls related to life-threatening medical emergencies. Cuttone & Mastro (C&M) was provided the raw data and sorted the data to determine whether the numbers used were accurate. C&M addressed the question of whether all in-home life-threatening medical emergencies calls should be used in the calculation of the costs to be reimbursed or whether only the calls related to COVID-19. The FCFPD does not have the ability to determine how many of the in-home life-threatening medical emergency?s calls were for COVID-19. C&M were told that the responders had to take precautions on all calls because of COVID-19. However, because we were unable to determine the accuracy of the percentage of calls being related to COVID-19 we have reported the total amount paid as questioned. Condition: C&M addressed the question of whether all in-home life-threatening medical emergencies calls should be used in the calculation of the costs to be reimbursed or whether only the calls related to COVID-19. The FCFPD does not have the ability to determine how many of the in-home life-threatening medical emergency?s calls were for COVID-19. In addition, It does not appear key management have sufficient understanding of compliance with federal statues, regulations and the terms and conditions of the federal awards and that program information from federal and other agencies flows to appropriate program management personnel. Criteria: In the Final Rule, The Department of Treasury determined that costs for emergency medical response costs provided directly to an individual due to COVID-19 infection or a potential infection is an enumerated eligible use of SLFRF. In addition, FCFPD represent to the Fresno County that 3,174 calls of their total 13,339 calls for assistance were identified as in-home life-threatening medical services related to COVID-19 emergencies that created a financial burden on the District due to several factors such as staffing levels, overtime pay, increased fuel costs for those calls that exposed or had the potential to expose their first responders to the virus. This information was also provided to the County by email dated Friday, March 4, 2022 from Dustin Hail, in which Chief Hail stated that in the period of March 1, 2021 through March 1, 2022, ?Total emergency responses 13,339 of that 23.8% were treated as life threatening Covid-19 emergencies.? Cause: The FCFPD does not have the ability to determine how many of the in-home life-threatening medical emergency?s calls were for COVID-19. Also, the FCFP?s internal control processes related to federal awards were circumvented by management. Effect: After consultation with a representative of Fresno County who stated the Fresno County staff believes that the FCFPD would be in the best position to produce back up information. The FCFPD must have documentation for its calls that would specify whether each call was a call responding to a ?life threatening Covid-19 emergency, and that Fresno County requests this information. C&M considered it necessary to report this as a questioned cost. Recommendation: C&M recommends that FCFPD obtain clarification on whether the need to take precautions on all in-home life-threatening medical emergencies calls because of COVID-19 created a financial burden on the FCFPD due to several factors such as staffing levels, overtime pay, increased fuel costs for those calls that exposed or had the potential to expose their first responders to the virus. In addition, C&M recommends the FCFPD provide the appropriate training for all staff involved in the administration of federal awards to become knowledgeable of the internal controls designed. View of Responsible Officials: Management agrees with the finding and has provided the accompanying corrective action plan