Finding Text
2024-002 – Unallowable and Improperly Allocated Expenditures Condition: Two expenditures were determined to be unallowable, and two others were improperly allocated to the SSG Fox SPGP Grant. These included a vehicle purchase, professional fees, and accounting service costs that were not allocable to the program. Criteria: Per the Uniform Guidance (2 CFR 200 Subpart E), allowable costs must be necessary, reasonable, allocable to the award and properly documented. Effect: There is an increased risk of unallowable expenditures reducing funding availability for approved suicide-prevention activities. Cause: Homeward Bound Adirondack, Inc. did not have procedures in place for management to adequately review expenses prior to charging costs to the grant. Recommendation: We recommend that Homeward Bound Adirondack, Inc. implement controls to review allowability and allocability of all costs prior to the submission of drawdowns. We also recommend that staff be trained on allowable costs in accordance with Uniform Guidance. Response: Homeward Bound Adirondack, Inc. agrees with the finding and will implement procedures to address the recommendation in 2025.