Audit 301273

Criteria or Specific Requirement: 2 CFR 200.403 details the factors affecting the allowability of cost. Specifically, 2 CRF 200.403(e) provides that costs must be determined in accordance with generally accepted accounting principles (GAAP). GAAP provides that audit costs are not incurred until the audit services are performed. Condition: The Organization has charged audit costs to the program and received reimbursement; however, the audit cost charged to the program had not yet been incurred prior to June 30, 2023. Cause: Failure to understand, follow, and apply generally accepted accounting principles as it relates to audit costs for the Organization. Effect: The Organization charged audit costs to this program and received reimbursement from the grantor before the costs were incurred. Questioned Costs: $ 12,494 Prevalence of Audit Finding: In addition to the above, audit costs of $ 16,428 were charged to other federal programs before being incurred. Recommendation: Management should review the Organization's fiscal policy manual policies and procedures for consistency and compliance with GAAP and Uniform Guidance Cost Principles. View of Responsible Official (Unaudited): There is no disagreement with the audit finding regarding costs allowed or allowable.

Criteria or Specific Requirement: 2 CFR 200.403 details the factors affecting the allowability of cost. Specifically, 2 CRF 200.403(e) provides that costs must be determined in accordance with generally accepted accounting principles (GAAP). GAAP provides that audit costs are not incurred until the audit services are performed. Condition: The Organization has charged audit costs to the program and received reimbursement; however, the audit cost charged to the program had not yet been incurred prior to June 30, 2023. Cause: Failure to understand, follow, and apply generally accepted accounting principles as it relates to audit costs for the Organization. Effect: The Organization charged audit costs to this program and received reimbursement from the grantor before the costs were incurred. Questioned Costs: $ 12,494 Prevalence of Audit Finding: In addition to the above, audit costs of $ 16,428 were charged to other federal programs before being incurred. Recommendation: Management should review the Organization's fiscal policy manual policies and procedures for consistency and compliance with GAAP and Uniform Guidance Cost Principles. View of Responsible Official (Unaudited): There is no disagreement with the audit finding regarding costs allowed or allowable.