Finding 959104 (2022-010)

Significant Deficiency
Requirement
BL
Questioned Costs
-
Year
2022
Accepted
2024-03-20
Audit: 296246
Organization: County of Delta (MI)

AI Summary

  • Core Issue: Reimbursement requests for the Airport Improvement Program included improper payments due to manual data entry errors and lack of review controls.
  • Impacted Requirements: Compliance with allowable costs and cost principles, including accurate reporting and avoiding duplicate or ineligible payments.
  • Recommended Follow-up: Implement a secondary review and approval process for all reimbursement requests to ensure only allowable costs are submitted.

Finding Text

2022-010 – Improper Payments Requested for Reimbursement Finding Type: Significant Deficiency in Internal Controls and Noncompliance (Allowable Costs/Cost Principles, Reporting) Federal Program: U.S. Department of Transportation – Airport Improvement Program (AL #20.106); Grant Number: 3-26-0031-046-2021 (COVID-19 Coronavirus Response & Relief Supplemental Appropriation Act - Airport Coronavirus Response Grant Program) Criteria: Costs charged to grants and included in reimbursement requests should be free of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received. Condition: The Airport Manager prepared reimbursement requests by manually transferring data from the general ledger to summary spreadsheets. During this manual process, the decimal place on one item was slid to places to the left ($6,599.00 rather than $65.99) resulting in the request for reimbursement being overstated. In addition, select reimbursements for fuel purchases were transferred with the inclusion of taxes resulting in the request for reimbursement being overstated. As the Delta County Airport is the sole provider of fuel on the airfield, fuel prices submitted for reimbursement should reflect bulk fuel purchases only with taxes removed. The Airport incurred other expenses during the period that would have been eligible costs and that would directly offset the noted overstatements. However, the reimbursement requests that were filed included the errors. Cause: The County does not have controls in place to review and approve the costs reported as allowable on all reimbursement requests. Effect: As a result of this condition, the reimbursement requests submitted for this program included improper payments that should have been replaced with other eligible expenses. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that the County implement controls to ensure a secondary review and approval process is put into place for all reimbursement request submissions so that only allowable costs are charged to the grant. Views of Responsible Officials: The County will work to implement controls to ensure that reimbursement requests and related expenses are reviewed and approved for compliance.

Categories

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Cash Management Eligibility Reporting Significant Deficiency

Other Findings in this Audit

  • 382653 2022-006
    Material Weakness Repeat
  • 382654 2022-006
    Material Weakness Repeat
  • 382655 2022-006
    Material Weakness Repeat
  • 382656 2022-007
    Material Weakness Repeat
  • 382657 2022-007
    Material Weakness Repeat
  • 382658 2022-007
    Material Weakness Repeat
  • 382659 2022-008
    Material Weakness
  • 382660 2022-008
    Material Weakness
  • 382661 2022-009
    Significant Deficiency
  • 382662 2022-010
    Significant Deficiency
  • 959095 2022-006
    Material Weakness Repeat
  • 959096 2022-006
    Material Weakness Repeat
  • 959097 2022-006
    Material Weakness Repeat
  • 959098 2022-007
    Material Weakness Repeat
  • 959099 2022-007
    Material Weakness Repeat
  • 959100 2022-007
    Material Weakness Repeat
  • 959101 2022-008
    Material Weakness
  • 959102 2022-008
    Material Weakness
  • 959103 2022-009
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.38M
20.106 Airport Improvement Program $1.01M
15.226 Payments in Lieu of Taxes $411,258
10.665 Schools and Roads - Grants to States $228,469
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $63,519
16.922 Equitable Sharing Program $51,904
93.563 Child Support Enforcement $48,598
16.575 Crime Victim Assistance $39,186
16.738 Edward Byrne Memorial Justice Assistance Grant Program $38,227
97.012 Boating Safety Financial Assistance $18,400
93.658 Foster Care_title IV-E $14,174
97.042 Emergency Management Performance Grants $10,898
16.034 Coronavirus Emergency Supplemental Funding Program $4,890
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $3,612
97.067 Homeland Security Grant Program $201