Finding Text
2023-003 DEPARTMENT OF HOMELAND SECURITY Pass-through Commonwealth of Kentucky Division of Emergency Management; Disaster Grants - Public Assistance - Assistance Listing No. 97.036; Grant period - Year ended June 30, 2023
Criteria and Condition: 2 CFR 200.303 requires the non-federal entity to establish and maintain effective internal controls over compliance with Federal statues, regulations, and the terms and conditions of the Federal award including proper tracking of grant expenditures or compliance. WRECC's prcoesses over approving allowable costs in the proper period of performance could be enhanced as costs were chagred to the Distaster Grants - Public Assistance grant that fell outside of the proper period of performance
Cause: Certain internal controls were not in place to prevent costs from outside of the proper period of performance from being charged to the grant
Effect: The cost of the assistance may be disallowed
Questioned Costs: N/A
Context: A sample of timecards totaling $25,857 were selected for audit from the timecards that were charged to the Disaster Grants - Public Assistance grant. The test found one timecard that was not in compliance with the period of performance. Actual known error was determined to be $2,722
Recommendation: WRECC should enhance the review of costs prior to being transferred or charged to the grant to ensure it includes a review for proper period of performance.
View of Responsible Officials and Planned Corrective Actions: WRECC concrus with the finding, see corrective action plan.