Bright From the Start Audit

8/3/2019 Bright From the Start Audit

1/29


2/29

2

Unallowable Costs-2010

Labor Costs July 2010

We noted unallowable labor costs in July 2010 for Marvin King, Mayor and Mary King, City

Clerk. No timesheets were maintained on file for Marvin King. Additionally, time worked by

Mary King was not record on the required form and was documented on a calendar. Time

worked by Mary King was not signed by the employee and authorized by a supervisor.

Labor cost paid to Marvin King and Mary King was $800 and $550 respectively.

Total unallowable labor Costs for July 2010 is $ is $1,469 which includes $1,350 in labor

costs and $119 in associated unallowable taxes is due back to the sponsors food service

account (FSA).

2010 Mileage Costs

We noted that total approved mileage costs for 2010 was $1,798. Total mileage paid for 2010

was $3,805. Mileage costs were approved for monitoring sites and training; however, mileagewas not solely reimbursed for the approved purpose. Additionally, we noted several instances

where the purpose of the trip was not documented in accordance with 48CFR31.205-46.

Unallowable mileage costs for 2010 total $3,433. The 2010 SFSP report noted $1,012 in

unallowable mileage costs resulting in the remaining $2,421 due back to the sponsors food

service account (FSA).

Total unallowable costs for 2010 are $3,890.

Unallowable Costs-FY2011

Labor Costs FY2011

We noted unallowable labor costs in FY2011 totaling $26,094. Costs were unallowable due

to the following discrepancies:

Missing timesheet; Missing required signatures; Unidentified employees; Overpayments to employees; and Costs paid in excess of the approved budget.

Discrepancies result in $26,094 due back to the sponsors FSA. Associated taxes for

unallowable labor are also due back to the FSA.


3/29

3

2011 Mileage Costs

We reviewed mileage documentation for JanuaryJune 2011 and noted $782 in unallowablemileage costs. Discrepancies noted include:

Noncompliance with 48 CFR 31.205-46; Mileage reimbursed for unapproved purposes; and Mileage reimbursed for travel outside of Program operations.

Discrepancies result in $782 due back to the sponsors FSA. Total unallowable costs forFY2011 are $26,876

Additional Information

We noted several reported transactions detailed in Attachment B that are unallowable. The

canceled checks for these transactions were not available at the time of review; therefore, the

monies are not due back to the FSA without proof of payment. Additionally, sufficient

financial detail was not available to evaluate all July 2010 labor costs (e.g. missing payroll

registers).

The July 2011 claim for reimbursement was not filed at the time of our review; therefore the

meals claimed and reimbursed for July 2011 has not been reconciled to the number of meals

observed by reviewers for the 20 sponsored sites evaluated.

Recommendations

We recommend that the remaining meal and financial records be requested and evaluated to

determine all pending unallowable costs.

K


4/29

^qq^`ejbkq=^


5/29


6/29


7/29


8/29


9/29


10/29


11/29


12/29


13/29


14/29


15/29


16/29


17/29


18/29


19/29


20/29


21/29


22/29


23/29


24/29


25/29


26/29


27/29


28/29


29/29

Documents

Bright From the Start Audit