Finding 59443 (2022-002)

Significant Deficiency in Internal Controls over Compliance related to the allowable cost principles compliance requirement. Federal Agency: Department of Treasury Pass Through Agency: City of Bellevue Program Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds CFDA Number: 21.027 Award Number: SLFRP4086 Award Period: September 1, 2021 - March 31, 2023 Criteria In accordance with 2 CRF 200.430, Allowable payroll costs should be applied based on level of effort reporting for each period and supported by proper documentation. Condition/Context for Evaluation Payroll costs do not appear to have been allocated to the program within the payroll system in line with level of effort based on approved timecards. Effect or Potential Effect The Organization was unable to substantiate allocations of payroll costs within their payroll system. Questioned Costs $557 Cause The Organization?s internal controls did not ensure that payroll costs were being properly allocated to the program. Repeat Finding Not a repeat finding. Recommendation We recommend that that the Organization evaluate the payroll system in place to ensure reliable application and reporting of payroll cost allocations. Views of Responsible Officials of Auditee Management agrees with the finding and has provided the accompanying corrective action plan.