Finding Text
Item 2023-006 – Allowable Costs/Cost Principles
Significant Deficiency
Federal Program – Cooperative Extension Service
Assistance Listing Number – 10.500
Pass-through Grantor's Number – 1-575259-3
Federal Award Year – December 31, 2023
Federal Agency – U.S. Department of Agriculture
Pass-Through Entity – Oklahoma State University
2 CFR 200.302 (b) stipulates federal award recipients and subrecipients' financial management system must provide for the identification of all federal awards received and expended on their SEFA.
The Foundation was unable to distinguish federal and non-federal expenditures during the fiscal year for one program administrated by its affiliate. As a result, the amount reported on the SEFA represents the amount of federal dollars reimbursed during the fiscal year, and does not directly correlate to an underlying expenditure detail.
Reconciliations of federal expenditures to revenues recorded were not prepared timely, nor were they reviewed for accuracy.
For this specific program, the Foundation is at an increased likelihood of expending federal awards for unallowable or questioned costs.
Not applicable.
This is not a repeat finding.
The Foundation should perform reconciliations of federal revenues to expenditures on a monthly basis, which should be reviewed for accuracy. The Foundation should maintain all records of underlying support of expenditures incurred as related to draws of federal money in order to support that the draws were appropriate and for allowable costs.
Management's response is reported in "Corrective Action Plan" at the end of this report.