Finding Text
FINDING NO. 2024-001: Assistance Listing No. 10.331 and 10.443 - Activities Allowed or Unallowed; Allowable Costs/Cost Principles Significant Deficiency Condition: Program expenses are approved via budget documents and during program director meetings. Criteria: Program expenses should be approved by the appropriate personnel on an individual basis as incurred. Cause: A director reviews budgeted expenses with program managers, who then proceed with purchases within budget limitations. Effect: Program expenses are not reviewed on an individual basis as incurred, and unallowable costs may be charged to the grant. Context: A sample of seven non-payroll items was reviewed, and no unallowable costs were detected. Recommendation: Any expenses that are associated with a federal grant should be approved by the appropriate program manager on an individual basis as incurred. Views of Responsible Officials and Planned Corrective Actions: Cultivate Kansas City, Inc. agrees with the finding and is in the process of revising its procedures.