Finding 969431 (2022-014)

ALN 21.027 - CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS (CSLFRF) Reference Number 2022-014 Program Costs Criteria: Internal controls should be suitably designed to ensure only eligible costs are charged to the program. Only eligible costs should be charged to the program. Condition Found: The City elected to use the standard allowance for revenue loss as allowed under the CSLFRF. The City elected to apply EMS payroll costs as costs as such costs used to support public health as allowed under CSLFRF. The City identified the payroll costs applied to the program for an amount equal to the revenue loss claimed and provided a detail for sample selection and testing. In testing internal controls over compliance and compliance, we noted one employee in the sample selected was a library employee during the pay period tested rather than EMS. Context: Condition was noted in conducting testing for internal controls over compliance and compliance over allowable costs and allowable activities in a random sample of 40 payroll transactions. Sample size was expanded to 71 and no other exceptions were noted. Effect: The effect of this matter results in unallowed costs. Questioned Costs: None reported. Cause: The employee was a library employee and later transferred to the EMS department in March 2022. The employee was erroneously included in the listing of EMS employees for the fiscal year ended September 30, 2022 in the list of costs claimed to the program. Recommendation: We recommend the City implement controls to ensure all costs identified as having been charged to the program are allowable. Repeat Finding from Prior Year(s): N/A Views of Responsible Officials: See management’s corrective action plan.