Finding Text
Assistance Listing Number: 66.958
Federal Agency: Environmental Protection Agency
Federal Award Year: 2019
Program Title: Water Infrastructure Finance and Innovation (WIFIA)
Repeat finding: No
Criteria: Under 2 CFR 200, costs must not consist of improper payments, including 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.
Condition: A selection of 60 internal time charges billed to the loan were selected for testing. Of these, 3 did not match Medford Water
Commission approved work rate schedules amounts. All three discrepancies related to the same employee.
Cause: Clerical error in rate entry within accounting system.
Effect: Drawdowns requested on loan included unallowable costs related to amounts charged for work performed by Medford Water
Commission. Known questioned costs are $514. Estimate of likely questioned costs is $20,965. Estimate of likely questioned costs was
calculated by projecting the known error rate to the remaining population.
Recommendation: Rate changes made in system should be reviewed and documented.
Response:Management concurs with this finding