Audit 371498

Federal Agency: U.S. Department of Energy Federal Program Name: Weatherization Assistance for Low-Income Persons Assistance Listing Number: 81.042 Federal Award Identification Number and Year: 25111018790 – PY24 Pass-Through Agency: MN Department of Commerce Pass-Through Number(s): DE-EE0009910 Award Period: July 1, 2024- June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with allowable costs under the program guidelines. The Organization should have controls in place to prevent expending funds on disallowed costs. Condition: During our testing, we noted the Organization spent grant funds on contractor appreciation gifts which is a disallowed cost. Questioned costs: $1,370 Context: During our testing, it was noted the Organization believed the appreciation expense to be approved by the grantor. Upon review of the communication from the grantor, it was noted there was no explicit approval of the expense. Cause: The Organization believed the expense to be approved by the grantor. Effect: We noted one instance of noncompliance with the provisions of allowable costs. Repeat Finding: Not a repeat finding. Recommendation: The Organization should review the program guidelines for allowable costs related to appreciation gifts. If necessary, explicit approval over these costs should be obtained from the grantor. Views of responsible officials: There is no disagreement with the audit finding.