Finding 616240 (2022-005)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-07-10

AI Summary

  • Core Issue: Misinterpretation of federal rules led to premium pay exceeding the $25,000 limit for some workers.
  • Impacted Requirements: Internal controls were insufficient to ensure compliance with federal regulations (2 CFR 200.303).
  • Recommended Follow-Up: Implement procedures to accurately interpret and adhere to all grant award rules and regulations.

Finding Text

COMPLIANCE REQUIREMENTS: Allowable Cost/Cost Principles FEDERAL AGENCY: United States Department of TreasuryCoronavirus State and Local Fiscal Recover Funds ? Assistance Listing#21.027 QUESTIONED COSTS: $127,318 CONDITION: The Police Jury awarded premium pay to eligible workers in FY 21 and FY 22. Total premium pay payments made to select eligible workers exceeded $25,000. CRITERIA: Federal regulations (2 CFR 200.303) require non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program requirements. CAUSE: Due to a misinterpretation of the interim rules, the Police Jury believed that the $25,000 cap on payments to a single eligible worker applied to each round of payments and not to total payments. EFFECT: The misinterpretation of the interim rules resulted in certain eligible workers receiving premium pay payments in excess of $25,000 during the applicable time period. CONTEXT: Eighteen employees were identified as eligible workers and were deemed qualified to receive premium pay. These eligible workers received premium pay payments in FY 21 and FY 22, resulting in eight employees receiving total payments which exceeded $25,000. RECOMMENDATION: Procedures should be established to ensure that all grant award rules and regulations are interpreted correctly and followed. VIEWS OF RESPONSIBLE OFFICIALS: See corrective action plan for current audit findings.

Categories

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 39798 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.34M
14.871 Section 8 Housing Choice Vouchers $894,989
20.509 Formula Grants for Rural Areas and Tribal Transit Program $265,637
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $79,477
97.067 Homeland Security Grant Program $39,364
15.226 Payments in Lieu of Taxes $1,587