Finding 618084 (2022-002)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-03-29

AI Summary

  • Core Issue: Duplicate reimbursement of payroll costs for the same period under two different federal programs.
  • Impacted Requirements: Violates 2 CFR 200.403(f) regarding allowable costs for federal programs.
  • Recommended Follow-Up: Implement a review system for reimbursement requests to prevent future duplications.

Finding Text

Finding #2022-002 ? Grant Program: Department of Transportation Airport Improvement Program ? Assistance Listing #20.106 Criteria: In accordance with 2 CFR 200.403(f), a cost is not allowable under a federal program if it is included as a cost or used to meet cost sharing or matching requirements of any other federally-financed program in either the current or a prior period. Condition & Context: As a result of our audit procedures, we noted amounts previously reimbursed for February through May 2020 payroll under AIP 69 (CARES Act) in the fiscal year ended June 30, 2020 were also reimbursed under AIP 73 (ARPA) during the year ended June 30, 2022. Cause: Lack of procedures related to monitoring and review of reimbursement requests. Effect: $414,761 of expenditures were removed from the Schedule of Expenditures of Federal Awards. Additionally, an audit adjustment was proposed to adjust the previously reported grant revenue to deferred revenue as of June 30, 2022. Recommendation: We recommend management develop a system of reviewing and monitoring reimbursement requests to ensure that expenditures previously reimbursed under federal funding with similar allowable activities are not included in future requests. Management Response: See Corrective Action Plan.

Categories

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Subrecipient Monitoring Cash Management Reporting

Other Findings in this Audit

  • 41642 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program $1.03M