Finding Text
Unaccompanied Alien Children – AL #93.676, Allowed Costs Condition In review of budget to actual expenditure amounts for the year under audit, the auditor noted three line items that exceeded the allowed budget amount for the year. While in some instances a budget amendment was complete, there were still overages. Criteria Annual budgets are approved by the grantor agency and amendments must be submitted for approval to alter the original budget if needed. Cause For all three line items, the original budget as approved was exceeded. In one line item, the budget amendment, while approved, was requested after June 30, 2025. On another, the budget amendment contained errors, showed an overage as of June 30, 2025. And in the third line item, the budget details salary information at the job description level and the actual exceeded the budget for this position. Management stated that a budget amendment was not required for this level of information; however, no support for this statement was provided in writing. It appears that monitoring is not sufficient to prevent budget overages from occurring, nor to detect them timely to rectify the grantor. Effect enCircle violated their grant terms by exceeding their approved budget. Questioned Cost Amount $12,906.20 Recommendation Management should implement procedures that allow for proper reviews of budget to actual information for grants to verify amounts expended and amounts remaining for expenditure monthly. Additionally, grant management personnel and financial personnel need to work on better communication regarding financial status of grants. View of Responsible Officials and Planned Corrective Action enCircle has developed a new budget tracking tool at the correct budget line items to ensure all categories do not go over budget before budget amendments are submitted and approved. Included in this tool is predictive analytics to determine where budget amendments might be needed proactively instead of reactively.