Finding Text
Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires nonfederal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include ensuring that supporting calculations are accurate. Condition: The County made errors in its support summarizing/reconciling its allowable costs, when reporting the funds it spent under COVID-19 State and Local Fiscal Recovery Funds, overclaiming $7,125 cumulatively during the fiscal year. In addition, there is no formal documentation of the review being completed. Questioned costs: $7,125 Context: The County made errors on the amounts reported in 4 out of 4 reports tested, cumulatively overclaiming $7,125 during the fiscal year. Cause: Costs were paid accurately to employees and vendors, but, incorrectly allocated and charged to the grant due to adjustments/allocations made in subsequent periods. Effect: May result in unallowable costs being charged to Federal programs. Repeat finding: No. Recommendation: We recommend the County review its procedures relative to allocating costs and reviewing support provided for reporting to Federal programs.