Finding Text
Finding 2024-003: 93.591 - U.S. Department of Health and Human Services - Family Violence Prevention and Services/State Domestic Violence Coalitions Allowable Costs/Cost Principles, Significant Deficiency in Internal Control and Noncompliance Criteria: According to 2 CFR § 200.302(b)(5), non-federal entities must have written procedures to ensure that expenditures are in accordance with the terms and conditions of the federal award. Furthermore, entities are expected to compare actual expenditures with budgeted amounts for each federal award. Condition: During our audit, we noted that the Organization does not maintain or regularly review a budget-to-actual comparison for expenditures charged to the federal grant. As a result, management is unable to assess whether spending is aligned with the approved grant budget. Effect: Failure to monitor expenditures against the approved grant budget increases the risk of unallowable costs, budget overruns, and noncompliance with grant terms, which may result in questioned costs or potential repayment of funds. Questioned Costs: None. Cause: The Organization has not established internal procedures or systems to monitor grant expenditures against the approved budget. _x000C_Recommendation: We recommend that the Organization implement a process to compare actual expenditures to the approved grant budget on a regular basis. This may include monthly or quarterly reviews by program and finance staff to ensure expenditures remain within approved categories and thresholds. Documentation of such reviews should be maintained to demonstrate compliance.