Finding Text
Pass-Through Entity: Federated States of Micronesia National Government
Federal Agency: U.S. Department of the Interior
AL Program: 15.875 Economic, Social, and Political Development of the Territories
Federal Award No.: Various Compact Sector Grants
Area: Allowable Costs/Costs Principles
Questioned Costs: $7,080
Criteria:
In accordance with grant award D23AF00012, Compact Sector Grant assistance may not be obligated for international travel during Fiscal Year 2023.
Condition:
For 1 (or 5%) of 21 samples tested, Compact Sector Grant assistance was used for international travel.
Sector Grant Acct_Num FY23 Expenditure
D23AF00012 10-90-92-10195-23-8331 $7,080
Cause:
The State did not effectively enforce monitoring controls over compliance with allowable costs/cost principles requirements as stipulated in the grant awards.
Effect:
The State is in noncompliance with the applicable allowable costs/cost principles requirements, and total questioned costs of $7,080 are reported because the projected questioned costs exceed the $25,000 threshold.
Recommendation:
Responsible personnel should take steps to verify that Compact Sector Grant assistance is used for allowable purposes and in line with grant award D23AF00012.
Views of Responsible Officials:
Management agrees with the finding. Refer to separate Corrective Action Plan.