2023 Annual Comprehensive Report

CITY OF GREENSBORO, NORTH CAROLINA SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE YEAR ENDED JUNE 30, 2023

Section IV.

State Award Findings and Questioned Costs

Finding: 2023-001 Non-State System Street-Aid Allocation Fund (Powell Bill)

Significant Deficiency/Nonmaterial noncompliance – Activities Allowed / Allowable Costs Criteria: The funds allocated to cities and towns in accordance with NCGS § 159-30(e) and NCGS § 136-41.3 shall be expended for Powell Bill purposes as defined in the statutes. Condition: We noted two (2) instances where a total of $5,403 of ineligible expenses were charged to the grant during the fiscal year as a result of reopening a closed work order. Context: We tested a sample of 40 Powell Bill expenditures during the fiscal year. Effect: Amounts applied against restricted funds advanced to the City were duplicated costs already requested in a previous quarter. Questioned costs: Known questioned costs were $5,403 and likely questioned costs were calculated to be $43,246. Cause: System limitations in regards to tracking when work orders that were previously closed have been reopened and changed. Recommendation: We recommend the City strengthen controls to ensure work orders closed in a previous quarter are not reopened or tracked for ensure no costs are duplicated. Management’s Response: Management agrees with the finding; See corrective action plan.

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