Finding Text
Grantor: DEPARTMENT OF HEALTH AND HUMAN SERVICES
Program Name: Ryan White, Title I-IV, Part A
Ryan White Part A, MAI
CFDA #: 93.914
Condition: Monthly expenditure reports submitted for reimbursement were not supported by the general ledger activity. Total reported expenditures exceed total grant expenses recorded in the general ledger. Additionally, certain costs allocated to the program did not appear to be allowable program costs.
Questioned Costs:
$5,844
Context: The above questioned costs represent 0.60% of total program expenditures.
Criteria: As prescribed by the OMB Compliance Supplement, the allowed services and costs must be in accordance with the approved grant contracts and related budgets. Final expenditure reports submitted must agree with the underlying accounting records.
Cause: It appears that certain reported expenditures were greater than those recorded in the general ledger.
Effect: The unallowable costs could potentially be disallowed by the grantor, who may request that certain funds be returned or that future funding be reduced.
Recommendation:
Management should consider implementing additional review and reconciliation procedures relating to expense allocations recorded to the general ledger and grant reporting prior to the submission of expenditure reports.
Management Response:
Management is in the process of developing additional indirect expense allocation and review and reconciliation procedures to ensure allowable grant costs are properly recorded to the general ledger and expenditure reports are adequately supported by the underlying accounting records.