Finding Text
Criteria or Specific Requirement – Management is required to ensure that costs charged to the program are allowable costs. This includes having internal controls that ensure that all costs are allowable costs.
Conditions – Unallowable costs may have been charged to the Child Care and Development Block Grant program.
Context – During our testing of allowable costs and activities, we noted that the Organization charged mileage expenses to the program, which may be unallowable. Sampled costs related to mileage was $2,345. Through further audit procedures we determined that total mileage costs charged to the program, which may be unallowable, was $12,907.
Cause – Existing procedures surrounding the determination of allowable costs of non-payroll costs were not followed.
Effect – Mileage was charged to the program which may be unallowable costs.