Finding 627860 (2022-002)

Finding #2022-002 Internal Controls Over Compliance For Allowable Costs Affected Program: Highway Planning and Construction Cluster AL number 20.205/20.219. Condition: We noted two expenditures charged to the grant that were reimbursed twice and one that was reimbursed for more than the underlying support. Questioned Costs: Known costs of $1,041 and likely costs of $1,612. Criteria: 2CFR section 400 specifies the requirements related to allowable costs. Context: Out of 60 expenditure items tested for the grant, we noted two that were reimbursed twice, and one that was reimbursed for the wrong amount when compared to the underlying support. Cause: Lack of detailed review of the reimbursement requests. Effect: Two expenditures were reimbursed twice and one was reimbursed for the incorrect amount. Recommendation: We recommended that management implement procedures to ensure reimbursement requests are accurate before being submitted to the federal agency. Client Response and Corrective Actions: See Corrective Action Plan.