Finding Text
2022-001 Department of Homeland Security, State of Idaho Office of Emergency Management, 97.036, FEMA-DR-4589-ID Disaster Grants ? Public Assistance Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Matching, and Period of Performance Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Administrative labor costs were claimed for reimbursement and match that fell outside the period of performance of the federal award in two instances. In addition, we noted one instance in which the Cooperative submitted a material cost for reimbursement and match that was not used in the project. Cause: The labor costs related to the day before the start of the period of performance. A transposition error of one additional pole was made on the reimbursement spreadsheet. Effect: The Cooperative?s control process and procedures did not detect or correct the errors. Concerning the costs of administrative labor, the Cooperative submitted $352 for reimbursement and 10% match of $39 for five hours of labor. Concerning the costs of materials, the Cooperative submitted $525 for reimbursement and 10% match of $58 for one additional pole. Questioned Costs: No questioned costs over $25,000. Context/Sampling: Nonstatistical sampling was used. Sample size was 60 transactions which accounted for $694,499 out of $1,494,894 of federal program expenditures of which $1,345,404 was submitted for reimbursement and $149,490 was considered the 10% matching portion. Repeat Finding form Prior Year: No Recommendation: We recommend the Cooperative continue to review the process over the tracking of labor costs and materials to ensure accuracy of costs submitted for reimbursement. Views of Responsible Officials: Management agrees with the finding.