Finding Text
Criteria
Costs charged to federal grant programs must follow the Uniform Guidance when determining if a cost is allowable under the program. One of the requirements is that a cost can only be funded by one program.
Condition
The City used grant funds to pay expenditures that were already requested for reimbursement from the LCDBG grant and Clean Water State Revolving Funds.
Cause
The City did not have proper controls in place to ensure that expenditures were not paid by multiple federal programs.
Effect
The City utilized federal funds to pay for expenditures that had already been requested for reimbursement from other federal programs.
Context
A sample of 18 disbursements were selected for audit from a population of 48 disbursements. The test found that three disbursements had already been charged to other federal programs. It was determined that $339,904 was charged to other federal programs and are considered questioned costs.
Recommendation
The City should implement policies and procedures to ensure that expenditures are not charged to multiple federal programs.
Views of Responsible Officials and Planned Corrective Action
The City agrees with the finding and has established policies and procedures to ensure that expenditures are only charged to one federal program.