Finding Text
FINDING 2022‐004 Significant Deficiency in Internal Controls and Compliance over Activities Allowed
and Unallowed and Allowable Cost Principles
Federal Agency: Department of Treasury
Pass through Grantor: Multiple
Federal Program(s): COVID‐19 Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number(s): 21.027
Criteria: Costs submitted to the grantor should be accurate representations of expenditures incurred in responding to
the public health emergency with respect to COVID‐19 or its negative economic impacts.
Condition: During our testing it was determined that one location of the Division requested reimbursement for costs of
$52.04 (overstatement) and $82.40 (understatement) that were miscalculated due to a clerical error and therefore
should not have been requested for reimbursement.
Cause: One location of the Division had a clerical error in the workbook used to allocate payroll costs to grants, which
resulted in certain payroll costs calculating incorrectly and the Division submitting an incorrect amount for
reimbursement.
Effect: Insufficient reviews can lead to clerical errors that result in unallowable costs charged to the grant and
recognition of incorrect funding amounts.
Questioned Costs: $82.40 (understatement) and $52.04 (overstatement). Likely questioned costs in excess of $25,000.
Context or Perspective: We identified four (4) instances out of our total of sixty (60) selections which overstated the
Schedule for the year ended September 30, 2022; and two (2) instances of our total of sixty (60) selections which
understated the Schedule for the year ended September 30, 2022. These costs were related to allocation of fringe
benefits that had been inaccurately calculated.
Recommendation: The Division should enhance internal controls when reviewing internally generated reports,
specifically over report parameters and clerical accuracy to ensure accurate reimbursement requests from grantors.
Views of Responsible Officials: See Corrective Action Plan.