Finding Text
Information on the Federal Program: Assistance Listing Number 21.027-Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of the Treasury. Compliance Requirements: Allowable Costs/Cost Principles. Type of Finding: Material Weakness in Internal Control Over Compliance.
Criteria: Internal controls should be in place to provide reasonable assurance that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles.
Condition: The County lacks sufficient controls over allowable cost/cost principles to ensure that costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles.
Cause: The County did not design and implement controls over compliance with allowable cost/cost principles.
Effect or Potential Effect: Failure to have adequate internal controls over compliance with allowable cost/cost principles could result in costs charged to the program that are not allowable costs as defined by the appropriate cost principles circular.
Questioned Costs: There are no questioned costs.
Recommendation: We recommend that the County design and implement controls to ensure: Accountability for authorization is fixed in an individual who is knowledgeable of the requirements for determining allowable costs; and supporting documentation is compared to lists of allowable and unallowable expenditures.
Views of Responsible Officials and Planned Corrective Action: Management concurs with the audit finding. The County will design and implement controls to ensure that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles.