Finding 11280 (2023-002)

2023-002 Allowable Costs/Activities Allowed Funding Agency: U.S. Department of Health and Human Services Pass Through Grantor: Georgia Department of Early Care and Learning, Bright from the Start Grant: Early Head Start CFDA Number: 93.600 Grant Number: 469-G23-SEL-EHSCCP-017 and 469-G23-SEL-EHSCCP-018 Criteria: Funds spent under the grant must be allowed under Title 2 U.S. Code of Federal Regulations Part 200 Subpart E, Cost Principles (“Cost Principles”). Condition: During the course of the auditing procedures we noted that the Organization had one charge to the grant which did not follow Cost Principles. The cost was entered in the general ledger system used to apply for reimbursement at an amount greater than could be supported. Questioned costs: $4,607Context: Of forty expenditure samples, totaling $28,103, selected from a population of $171,344, we noted one which did not follow Cost Principles. Effect: The costs could be deemed to be unallowable and have to be returned to the grantor. Cause: Due to an ineffective review process of the charged costs compared to what is allowed under Cost Principles. Recommendation: Management should ensure all costs charged to the grant follow Cost Principles. Grantee Comment: Refer to Corrective Action Plan