Audit 396143

Period of Performance – Significant Deficiency and Noncompliance ALN 10.557 WIC Special Supplemental Nutrition Program for Women, Infants, and Children Condition: WIC expenditures are charged to the oldest open WIC grant regardless of when specific costs are incurred. WIC expenditures are comingled and are not tracked separately by each grant. Criteria: In accordance with 2 CFR 200.309, costs charged to a federal award must be incurred during the approved period of performance and supported by adequate records to demonstrate allocability to the specific grant period. Effect: The lack of grant-level tracking between grant periods increases the risk that costs could be charged to an incorrect grant period, increasing the risk of fraud, error, or omission in grant administration. Questioned Costs: Utilizing cutoff testing between specific ending grant periods, our testing identified $166,317 in questioned costs. Cause: The City lacks procedures and system controls to track WIC expenditures by individual grant award and period of performance. Recommendation: We recommend the City implement procedures to ensure WIC expenditures are tracked and supported by individual grant period. This may include maintaining details for each individual grants or enhancing existing processes to ensure expenditures are charged to the appropriate period of performance. Views of Responsible Officials: See the City’s Corrective Action Plan.