Finding Text
Finding 2024-004 - Material Weakness: Period of Performance
Identification of federal program: Assistance Listing No. 93-493 - Congressional Directives
Criteria or specific requirement: Section 200.1 of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards requires that, "A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award's period of performance and any costs incurred before the federal awarding agency or pass-through entity"
Condition: The aproved grant includes a budget period from September 30, 2023 through September 29,2026. Expenditures were included on the 2024 Schedule of Expenditures of Federal Awards, however, the expenditures were incurred prior to the budget period start date.
Cause: Expenditures were incurred prior to the budget period start date, however, reimbursement was requested from the grantor.
Effect or potential effect: This resulted in material non-compliance with the period of performance requirement for the grant programs. The expenditures included on the 2024 Schedule of Expenditures of Federal Awards were overstated.
Questioned cost: $232,870. The 2024 Schedule of Expenditures of Federal Awards has been corrected for this finding.
Context: Expenditures were included on the 2024 Schedule of Expenditures of Federal Awards, however, the expenditures were incurred prior to the budget period start date.
Recommendation: We recommend that the System personnel administering the grant program comply with the System's established process, whereby the drawdown on reimbursement requests include expenditures incurred within the budget period of the approved grant.
Views of responsible officials: The System concurs with this finding. See page 55 for corrective action plan.