Finding 1166143 (2024-002)

2 CFR § 300.1 gives regulatory effect to the Office of Management and Budget Guidance in 2 CFR part 200 for the Department of Health and Human Services and has codified the text with HHS-specific amendments in 45 CFR part 75. 45 CFR § 75.403 states, in part, that costs be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles and be adequately documented. Due to the lack of adequate controls over the documentation of federal spending and adjustments related thereto, testing over the Foster Care Program at the County’s Department of Job and Family Services identified a manual adjustment that was submitted which duplicated an actual expenditure, totaling $37,807 that was improperly charged to this grant. This led to actual questioned costs of $37,807. These types of errors could result in a loss of funding. The County Department of Job and Family Services should establish control procedures to ensure data entered for reimbursement is accurate and that if these are adjustments being made, that they are not duplicating any already submitted expenditures.