Finding Text
Condition During our current year compliance testing, we identified expenditures totaling $96,250 that were charged to a federal award after the approved period of performance had ended. These costs were not incurred within the authorized period specified in the grant agreement and no formal extension had been approved by the granting agency. Questioned Costs $96,250 – Known questioned costs representing expenditures incurred outside the approved period of availability. Criteria A non-federal entity may charge to a federal award only allowable costs incurred during the approved period of performance. Costs incurred outside the established period of availability are unallowable unless a formal extension has been granted by the awarding agency. Cause The Organization did not maintain adequate internal controls to monitor grant period of performance end dates and ensure that expenditures were incurred within the allowable timeframe or that an extension was requested prior to expiration.Effect of Condition $96,250 of costs were charged to the federal award that may be deemed unallowable. Recommendation We recommend that management strengthen internal controls over grant compliance by: • Maintaining a centralized tracking system for grant performance periods • Performing periodic reviews of grant expenditures relative to award end dates • Implementing formal closeout procedures prior to grant expiration • Requesting extensions in advance when necessary