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.