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, mileage was 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.

2011 Mileage Costs We reviewed mileage documentation for January June 2011 and noted $782 in unallowable mileage 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 for FY2011 are $26,876 K 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.

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