Finding Text
2023-003- Significant Deficiency: Activities Allowed or Unallowable Costs/Cost Principles
Criteria: According to federal regulations, expenditures charged to federal grants must follow
the allowable cost principles found in 2 CFR Part 200, subpart E.
Additionally, 2 CFR.200.303 requires nonfederal entities to, among other things, establish and
maintain effective internal control over the Federal award that provides reasonable assurance that
the non-Federal entity is managing the Federal award in compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award.
Condition: During our testing of federal expenditures, we noted that certain expenses were not
allowable activities under uniform guidance.
Cause: Internal controls surrounding the review of supporting documentation of expenditures
charged to grants are not properly implemented to detect and correct errors.
Effect: The Organization received reimbursement for unallowable expenditures.
Questioned Costs: ALN 84.287 - $938
ALN 84.215J - $620
Recommendation: We recommend that management of the Organization review internal
controls and ensure they are properly designed and implemented to ensure that expenditures are
allowable under federal regulations.
Views of Responsible Officials: Management agrees with this finding and their response is
included in the corrective action plan.