Finding Text
2024-002 Child Care Development Fund Cluster ALN 93.575 and 93,596
Condition
There was one expenditure tested under the CCDF American Rescue Plan Act Child Care Supplementary Discretionary
grant that did not get obligated by the required date.
Criteria
Funds should be obligated by the end of the succeeding federal fiscal year after award and expended by the end of the
third federal fiscal year.
Cause
The CCDF ARP Supplementary Discretionary grant was the only grant that did not receive a federal extension or Tribal
waiver. The Tribe was under the impression that all CCDF grants would have waivers.
Effect
One item was not obligated by the required date, total $13,604.
Perspective Information
One tested of one in the ARP discretionary, but one of 25 in all CCDF.
Recommendation
We recommend establishing a formal policy regarding definitions of obligation and liquidation. This should be formally
approved by Council with a resolution.
Views of Responsible Officials and Planned Corrective Action
During a meeting prior to the end of the obligation period, we decided how we would use the referenced funds. We
documented that decision in the meeting minutes and believed we had met the obligation requirements. The Funding
Agency was satisfied with our explanation of the funds being considered obligated, as the Tribes can define obligation in
their own terms. However, the actual contract wasn’t executed until after the obligation period was over. In addition, we
also thought the obligation and liquidation periods for this particular grant had been extended along with those of similar
grants that we have from this agency, but realized later they had not been. We immediately started a review at the
beginning of each month of all grants to determine those whose obligation period ends that month. We also review at
that time for grants whose liquidation period ends that month. When either of these occur, we issue a notification to
Finance Staff to make them aware. We also notify the manager of those grants to ensure they are aware of the obligation
and liquidation deadlines. We will also review our Finance Policy and clarify our definition of obligation as needed.