Finding 624139 (2022-006)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-07-16
Audit: 49041
Organization: City of Pendleton, Oregon (OR)

AI Summary

  • Core Issue: The airport did not conduct a secondary review of payroll costs claimed under the CARES Act, leading to errors in claims for January, February, and April.
  • Impacted Requirements: Claims submitted were less than the available funding, and the lack of review may have resulted in missed reimbursements.
  • Recommended Follow-Up: Implement a mandatory secondary review process for all future claims to ensure accuracy and compliance.

Finding Text

Condition and criteria: The airport is allowed to submit payroll costs for reimbursement as part of the CARES Act program. There has not been a secondary review process on this portion of the expenses claimed and there were errors found in the amounts claimed for January, February and April claims. The overall amount claimed was less than the amount that was available and the funding level had been reached by year end. Cause: The Airport was attempting to maintain the privacy of employee payroll records and excluded these costs from the normal review process. Context and Effect: The overall amount claimed was less than the amount that was available and the funding level had been reached by year end. Auditor?s recommendation: This is an ongoing finding and we continue to recommend a secondary review and double checks of amounts claimed in the future. Management?s response: Economic Development & Airport Director believes that the double checking (of the calculations) was clearly instructed to previous airport manager, however, the step was apparently not followed last year. It is unlikely that any additional payroll will be reimbursed through CARES Act, but the new Airport Manager has been clearly instructed that all calculations must be doubled checked before submission. Note: This was a somewhat insignificant amount of money related to a part-time worker?s pay. It was also a minor under-collection (less than the City could have collected), which should have been double-checked, but may have possibly been intentional. Staff is unaware of any amount of payroll for which it was required to ask for reimbursement on, so this finding seems subjective and immaterial.

Categories

Cash Management

Other Findings in this Audit

  • 47696 2022-005
    Material Weakness
  • 47697 2022-006
    Significant Deficiency
  • 47698 2022-007
    Significant Deficiency
  • 624138 2022-005
    Material Weakness
  • 624140 2022-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program $1.48M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.07M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $655,563
20.509 Formula Grants for Rural Areas and Tribal Transit Program $154,149
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $134,180
95.001 High Intensity Drug Trafficking Areas Program $117,391
97.044 Assistance to Firefighters Grant $111,345