Finding 1163500 (2024-002)

Finding 2024-002 – Monthly Reporting/Tracking of Government Grants Statement of Condition: MBCDC receives many cost reimbursement government grants with monthly reporting. During the audit process, MBCDC was unable to provide reports from the accounting software demonstrating the grants are being tracked effectively. These grants are subject to oversight and repayments could occur. Criteria: When receiving federal funds, expenditures must be tracked and recorded in an accurate and consistent manner. Effect or Potential Effect: MBCDC is unable to accurately identify the status of grant expenses from grant sources which may result in over or underspending federal grants. Cause: Inconsistent or incomplete grant expense tracking procedures and tools. Recommendation: MBCDC created a process to track government grants with corresponding expenses to verify overuse or underuse of grant funds. Questioned Costs: $235,119 Reporting Views of Responsible Officials: MBCDC is updating grant tracking processes to better account for federal funds expended. Actions Taken or Plan on the Finding: MBCDC will update the grant tracking spreadsheets for federal funds and devote more resources to proper tracking procedures.