Finding Text
2023-002 Allowable Costs/Cost Principles for U.S. DHHS 94.432 ACL Centers for Independent
Living #2001MEILC3-00 (Material Weakness in Internal Controls over Compliance and
Noncompliance)
Criteria: Management is responsible for the design and implementation of internal controls to
prevent, or detect and correct unallowable costs from being charged to a federal award
program.
Condition and Context: Audit procedures noted two instances of expenses charged to the
2001MEILC3-00 grant that were estimated future expenses and that were not incurred or
obligated.
Cause: There is a lack of understanding allowable cost/cost principles and a lack of oversight on
expenses being charged to federal award programs.
Effect: Total expenditures charged to the 2001MEILC3-00 grant were inaccurate.
Questioned Costs: Known questioned costs related to our testing totaled $115,821. An
additional $15,465 in known questioned costs was also identified as noted below.
Recommendation: Procedures should be implemented to better monitor expenditures charged
to federal award programs by adding a review every month of expenditures charged to federal
grants and training should be sought for individuals involved in recording expenditures to federal
award programs on allowable costs/cost principles. In addition, Alpha One should contact the
Centers for Independent Living regarding this issue and return these funds.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the
findings and has already contacted the Centers for Independent Living to inform them of the
issue, and are working through whether return of the funds is necessary.