Finding Text
2025-002 : Assistance Listing No. 21.027 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Allowable Activities and Allowable Costs Criteria: In accordance with the Uniform Guidance (2 CFR Part 200) and the U.S. Department of the Treasury Compliance and Reporting Guidance for ALN 21.027, recipients of SLFRF funds are required to ensure that all transfers or subawards of federal funds comply with applicable allowability requirements. Condition: The Organization transferred a portion of the money received to PSLLC, which is outside of compliance requirements. Cause: The condition occurred due to inadequate internal controls over the review and approval of fund transfers, including insufficient understanding of SLFRF compliance requirements and a lack of formal procedures to assess compliance prior to transferring funds. Effect: As a result, SLFRF funds were used in a manner not in compliance with federal requirements, which may result in questioned costs, potential repayment of funds to the granting agency, and increased risk of noncompliance with federal grant regulations. Questioned Costs: $16,000 Recommendations: We recommend the Organization set up a system to review transfers of federal funding prior to the transfer taking place to ensure it is within the compliance requirements of the grant. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan included in report.