Finding Text
Finding Type Significant Deficiency and Noncompliance Federal Program Inflation Reduction Act Urban & Community Forestry Program, ALN #10.727 Criteria Per the Organization’s grant agreement with the Michigan Department of Natural Resources (DNR), allowable costs only include payroll and related costs for a Senior Community Forester. Condition The Organization expensed administrative payroll costs to the DNR grant, which is not allowable under the grant specifications. Cause Organizational oversight by grant supervisors and management personnel. Effect Failing to follow grant specifications and budgets can lead to unallowable costs and compliance issues. Recommendation The Organization should keep track of grant expenditures and review them in detail with regards to allowable costs that are listed specifically in the grant agreement. Response As noted in the corrective action plan, management agrees with this finding.