Finding Text
Internal Control Impact: Material weakness
Criteria: The Federal statutes, regulations, and terms and conditions of the TRIO cluster list construction, renovation and remodeling of facilities as unallowable activities. These cost items can never be charged to any TRIO program.
Condition: The Organization used TRIO funds to pay for various construction, renovation and remodeling costs during the year ended December 31, 2023.
Cause: The Organization had a lack of awareness of the specific activities which were unallowed per the grant award. The Organization also failed to implement adequate internal control activities to review and approve costs being charged to the grant program.
Effect: Use of grant funds for unallowable activities resulted in noncompliance and questioned costs.
Questioned costs: Known questioned costs identified totaled $14,891. Likely extrapolated questioned costs totaled $21,456 over the remaining population.
Recommendation: The Organization should ensure that terms and conditions of grant awards are reviewed to identify unallowable activities. The Organization should also implement procedures to ensure that costs being charged to the grant program are reviewed and approved.
Views of Responsible
Officials: Management of the Organization concurs with the finding. Please refer to the Corrective Action Plan.