Finding Text
Missing Written Cost Allocation Plan and Lack of Documentation Around Allocation Methodology and Lookback on Budget to Actual Analysis Information on Federal Programs: Assistance Listing Numbers: 93.591 Family Violence Prevention and Services/State Domestic Violence Coalitions. 93.671 Family Violence Prevention and Services/Domestic Violence Shelter and Supportive Services. Criteria: In accordance with the requirements in 2 CFR part 230 establishes cost principles for determining costs of grants, contracts, and other agreements with non-profit organizations. The principles are designed to provide that the Federal Government bear its fair share of costs except where restricted or prohibited by law. Administrative expenses are described as: “The expenses under this category are those that have been incurred for the overall general executive, and administration of the organization and other expenses of a general nature that do not relate solely to any major function of the organization." Condition: The Organization does not have a cost allocation plan in place. Due to this, there is a lack of documentation around allocation methodology and lookback on budget to actual analysis. We consider this to be a material weakness in internal controls over compliance with Allowable Costs/Cost Principles and is not considered a repeated finding. Questioned Costs: None Effect: As a result, the Organization does not have a written cost allocation plan to follow and administrative costs may not be sufficiently identified. As the Organization has more than one funding source, costs may be inequitably charged to programs. Cause:Although the Organization appears to be allocating costs, they still need to have written cost allocation plan created to make sure the plan is being followed and costs are charged appropriately to programs. Recommendation: Auditors recommend that the Organization review their system in place for cost allocation and implement a written cost allocation plan to ensure costs are charged appropriately to programs. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and their response is included with the Corrective Action Plan.