TANGIPAHOA PARISH FIRE PROTECTION DISTRICT NO. 1Local Government

Finding No. 2020-001: Assistance Listing Number: 21.019, COVID -19 - Coronavirus Relief Fund Material Weakness/Material Noncompliance Criteria: The State of Louisiana provided specific guidance on the costs which were eligible for reimbursement by a local government. In certain instances, this guidance was more restrictive than the allowable cost criteria issued by the U.S. Department of Treasury. Condition: The application submitted by the Fire District to the State of Louisiana, through the Tangipahoa Parish Government, included costs that were not eligible for reimbursement. Cause: The application preparer was unaware that the reimbursement request included ineligible expenses related to state supplemental pay for firefighters and certain employee benefits. Effect: Certain payroll and employee benefit amounts estimated at $80,000 may be disallowed. Context: A sample of payroll journals and invoices were selected for the testing of the internal control over compliance with allowable cost requirements and for compliance with those requirements. The payroll journals selected for testing included state supplemental pay for firefighters, which was not deemed to be a cost eligible for reimbursement by the State of Louisiana. The employee benefit invoices selected for testing also included certain ineligible costs. Questioned Costs: $80,000. The questioned costs relate to $70,000 for state supplemental pay for firefighters and $10,000 for ineligible employee benefits which were reimbursed by the State of Louisiana, through the Tangipahoa Parish Government. Recommendation: Training for personnel preparing government grant applications should emphasize the need to research both federal and state guidelines to ensure compliance with the most restrictive requirements. In addition, the Tangipahoa Parish Government and the State of Louisiana should be notified of the ineligible costs and inquire about further instructions on how to proceed. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and the auditor?s recommendations have been adopted.

Finding No. 2020-002 Noncompliance with Office of Management and Budget (OMB )- Single Audit Submission Requirement Noncompliance Criteria: A grant recipient that expends $750,000 or more during any fiscal year in federal awards must have a Single Audit. OMB extended the reporting date for Single Audit submissions to 6-months beyond the normal due date. Condition: The Fire District?s extended due date was March 31, 2022; however, that deadline expired prior to submission. Cause: The submission to the Federal Audit Clearinghouse was delayed due to staffing challenges caused by the COVID-19 pandemic, including the death of the Fire Chief. Effect: Noncompliance with requirement to submit its Data Collection Form and its Reporting Package to the Federal Audit Clearinghouse by the reporting deadline. Recommendation: Management should review its policies and procedures to ensure that its Data Collection Form and its Single Audit Reporting Package are submitted to the Federal Audit Clearinghouse by the required due date. Views of Responsible Officials and Planned Corrective Actions: The Fire District believes this situation was an isolated incident as the challenges of the COVID-19 pandemic were unprecedented. The Data Collection Form and the Single Audit Reporting Package will be submitted in May 2022.