Finding 1152416 (2024-001)

-
Requirement
A
Questioned Costs
$1
Year
2024
Accepted
2025-09-09
Audit: 365878
Organization: The Indianapolis Foundation (IN)

AI Summary

  • Issue: A subrecipient misused $46,111 of federal grant funds for unallowable expenses.
  • Requirements Impacted: Lack of proper review for allowable costs led to noncompliance with federal guidelines.
  • Follow-Up: The Foundation should strengthen controls and ensure subrecipients maintain proper documentation for compliance.

Finding Text

Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of Treasury Federal Assistance Listing Title and Number: COVID-19 Coronavirus State and Local Fiscal Recovery Funds, 21.027 Award Year: January 1, 2023 – December 31, 2023 Criteria or Specific Requirement: Activities Allowed or Unallowed/Allowable Costs Condition: Subrecipient self-reported misuse of federal grants funds. (Other Instance of Noncompliance) Questioned Costs: $46,111 Context: During 2024 a subrecipient self-reported misuse of federal grant funds claimed in 2023 totaling $46,111 of expenses used for unallowable purposes. Effect: Costs were approved by the subrecipient without appropriate review for allowability. Cause: Adequate review of allowability of costs by the subrecipient was not performed properly due to oversight in administration of the program. Repeat Finding: No Recommendation: We recommend the Foundation revisit controls over this compliance requirement with subrecipients to ensure appropriate documentation is obtained and maintained within files by subrecipients. Views of Responsible Officials and Planned Corrective Action: See corrective action plan prepared by management and attached.

Categories

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $13.37M