Finding 608223 (2022-001)

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Requirement
AB
Questioned Costs
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Year
2022
Accepted
2023-07-11
Audit: 26078
Organization: City of Inver Grove Heights (MN)
Auditor: Abdo LLP

AI Summary

  • Core Issue: The City requested more payroll reimbursement than allowed by the grant, using estimates instead of actual costs.
  • Impacted Requirements: This violates the grant's requirement to only claim actual payroll costs incurred during the grant period.
  • Recommended Follow-Up: City staff should review grant guidelines and create a reliable process for accurate reimbursement requests.

Finding Text

2022-001 U.S. Department of Homeland Security Staffing for Adequate Fire and Emergency Response Activities Allowed or Unallowed and Allowable Costs Criteria: The Staffing for Adequate Fire and Emergency Response grant requires grantees to request reimbursement for payroll costs incurred during the applicable grant period. Condition: During the course of our engagement, we noted the City requested grant reimbursement for a greater amount of payroll costs then what was actually incurred during applicable grant periods. Cause: Staff requesting reimbursement of the grant used estimated payroll costs for reimbursement requests, instead of the actual payroll costs. Effect: The City is out of compliance with the grant program and received a greater amount of funds then what was allowable. Recommendation: We recommend City staff review the grant requirements and determine a process for properly requesting reimbursement. Management Response: Management is working on establishing a process for submitting reimbursement requests.

Categories

Allowable Costs / Cost Principles Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
97.083 Staffing for Adequate Fire and Emergency Response (safer) $896,122
21.027 Coronavirus State and Local Fiscal Recovery Funds $122,430
20.600 State and Community Highway Safety $3,768
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $1,700
20.616 National Priority Safety Programs $694