Finding Text
2024-002 Activities Allowed and Allowable Cost Questioned Costs
Information on federal program
WIOA Cluster – Federal Assistance Numbers 17.258, 17.259, 17.278
Questioned costs
$30,712
Criteria
The direct and material compliance requirements for activities allowed and allowable cost principles require that
expenditures reimbursed through the WIOA Cluster be for allowable costs and activities allowed.
Condition
Our tests of activities allowed and allowable costs revealed that the Organization’s calculation of the accrued leave
liability was performed incorrectly and resulted in disallowed expenditures being reimbursed from WIOA grants.
Cause
The Organization experienced turnover in the Fiscal Agent position which resulted in an error in the accrued
leave liability computation which resulted in employee leave expense being inadvertently charged to the WIOA
grant a second time.
Effect
The computation error and disallowed costs resulted in a material weaknesses and questioned costs totaling
$30,712 for the Organization’s major program.Recommendation
We recommend that the Organization management review expenditures charged to the WIOA cluster to ensure
that expenditures charged are for allowable costs and activities allowed. We also recommend that the questioned
costs be reimbursed to the impacted WIOA cluster grants as soon as feasibly possible.
Views of management
Management concurs and will reimburse the appropriate grantors for the questioned costs and re-evaluate the
controls over cost identification.
Auditors’ summary of the auditee’s comments on the findings and recommendations
Management will reimburse the impacted WIOA grants for the questioned costs identified and provide adequate
training to staff responsible for the Organization’s administering and reporting on the Organization’s federal grant
programs.