Finding 946954 (2021-004)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2021
Accepted
2024-02-26

AI Summary

  • Core Issue: The Commission received duplicate reimbursements and claimed ineligible expenses from the Coronavirus Relief Fund, totaling over $73,000.
  • Impacted Requirements: Failure to maintain effective internal controls as required by Uniform Guidance 2 CFR 200.303 led to non-compliance with federal funding regulations.
  • Recommended Follow-Up: Implement stronger controls to ensure accurate reimbursement requests and conduct a review of past submissions to recover any excess funds received.

Finding Text

The Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance) 2 CFR 200.303 states the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal Award in compliance with the Federal statutes, regulations, and the terms and conditions of the Federal award. The Compliance Requirements for the Coronavirus Relief Fund require funding to be used to cover the costs of necessary expenditures incurred due to the public health emergency with respect to COVID-19. The Commission submitted reimbursement requests to the State to receive their share of Coronavirus Relief Funds, including reimbursements for leave paid on behalf of employees in accordance with the Families First Coronavirus Response Act. Testing revealed that the Commission requested and received duplicate reimbursements for leave totaling $11,042.44. Additionally, reimbursements were submitted and received for taxes withheld from employees totaling $62,372.97 which were not considered expenses of the Commission. Controls were not in place to ensure all reimbursement requests for Coronavirus Relief Funds were calculated and reported correctly. As a result, the Commission received reimbursements from Coronavirus Relief Funds in excess of what was allowable.

Categories

Questioned Costs Allowable Costs / Cost Principles Cash Management Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 370512 2021-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $726,446
97.067 Homeland Security Grant Program $264,696
21.027 Coronavirus State and Local Fiscal Recovery Funds $122,531
16.558 Violence Against Women Formula Grants $112,414
90.404 2018 Hava Election Security Grants $77,500
23.003 Appalachian Development Highway System $69,543
97.042 Emergency Management Performance Grants $41,320
39.003 Donation of Federal Surplus Personal Property $33,153
95.001 High Intensity Drug Trafficking Areas Program $25,870
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $23,618
99.999 Drug Enforcement Agency (dea Overtime Reimbursement) $19,420
90.401 Help America Vote Act Requirements Payments $19,250
99.999 Drug Enforement Grant (organized Crime Drug Etf) $17,235
16.922 Equitable Sharing Program $13,946
15.226 Payments in Lieu of Taxes $2,971