City of Buckeye, Arizona

Finding Number: 2019-001 Repeat Finding: No Program Name/CFDA Title: Aging Cluster CFDA Numbers: 93.044, 93.045, 93.053 Federal Agency: U.S. Department of Health and Human Services Federal Award Number: N/A Pass-Through Agency: Area Agency on Aging, Region One, Inc. Questioned Costs: $10,890 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles CRITERIA Management is responsible for establishing and maintaining internal controls to ensure expenditures funded with Federal funds are allowable based on the grant agreement and the provisions of 2 CFR part 200, Subpart E, Cost Principles (Uniform Guidance). CONDITION The City charged costs to the Aging Cluster that were unallowable or not properly supported. CAUSE The City did not separately account for the Aging Cluster grant in the general ledger. Additionally, the City did not have a process to support costs charged to the grant for employees with multiple cost objectives. Finally, the costs charged to the grant were not closely reviewed for allowability. EFFECT Unallowable costs were charged to the Aging Cluster, which may require repayment of grant monies. CONTEXT ? The City comingled the Aging Cluster grant with the Arizona Lottery Fund (ALF) grant. ? The City charged a portion of the Recreation Manager?s salary and benefits to the grant in error. ? There are three employees with multiple cost objectives that are charged to the Aging Cluster. The funding split is approved in the detailed budget submitted to Area Agency; however, there is no documentation of how the split was determined and the City is not separately tracking hours for each cost objective.RECOMMENDATION The City should segregate the Aging Custer grant from the ALF grant in the general ledger to ensure monies are appropriately spent on allowable activities and the City can clearly demonstrate which costs were charged to each grant. Additionally, the City should develop policies and procedures to support costs charged to grants for employees with multiple cost objectives. Finally, costs charged to the grant should be monitored and periodically reviewed by management for propriety. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.

Finding Number: 2019-001 Program Name/CFDA Title: Aging Cluster CFDA Numbers: 93.044, 93.045, 93.053 Contact Persons: Sherri Meredith/William Kauppi Anticipated Completion Date: Varied Planned Corrective Action: The Finance Department agrees with this finding and has completed the following: ? A separate fund will be established for the ALF grant in the general ledger (immediately). ? The City will develop policies/procedures to support costs charged to grants for employees with multiple cost objectives. (Policy/procedures has not yet been written but employees charged to grants for with multiple cost objectives are now logging their time per pay period to track time between activities.)