Finding Text
Criteria or specific requirement: According to § 2 CFR 200.303 Internal controls, the non-Federal entity must 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. According to 2 CFR 200.1 Period of Performance is defined as the total estimated time interval between the start of an initial Federal award and the planned end date, which may include one or more funded portions, or budget periods.
Condition and context: During our testing we noted three instances where the Organization allocated allowable expenses incurred outside of the period of performance dates.
Effect: The auditor noted instances of noncompliance. Noncompliance results in federal funds being used outside of the grant period.
Questioned costs: $53,077
Cause: The Organization does not have internal controls in place to ensure compliance with Federal regulations or the terms and conditions of the Federal award.
Recommendation: We recommend the Organization update their method of allocating expenditures to federal awards based on invoice date to ensure the incurred date is within the proper period of performance.
Views of responsible officials: The Organization will review grant requirements and make sure that allowable costs are incurred and allocated to the grant within the grant period.