Finding Text
Criteria: Condition: Cause and Effect: Questioned Cost: Repeat Finding: Recommendation: Views of Responsible Officials: 2024-006 It is recommended the Center evaluate and update it internal controls and procedures to ensure costs are appropriately considered when preparing the Center's monthly RFRs. See management's corrective action plan Requests for reimbursement (RFRs) in connection with CACTX grants are submitted monthly in accordance with the terms and requirements stipulated by the Center's grantor, CACTX. Costs and associated activates must be incurred within the grant period and specific claim period (month) to be eligible for reimbursement. Claimed costs must also be allowable under the grant terms, Uniform Guidance. Allowable direct costs applicable to a specific contract or funding source may be claimed from that funding source at 100%. Other allowable costs benefiting multiple programs or funding sources are subject to the Center's Cost Allocation Plan (CAP) as prescribed by CACTX: calculated each month based upon the time and efforts of the organization's personnel for the respective month. CAP rates are dynamic in nature and change monthly. Consequently, for a recurring or fixed monthly costs/expenses, including amortization of prepaid contracts, the amount that may be claimed each month changes based on each respective month's CAP. For the fiscal year under audit, the Center had 1 federal VOCA grant contract in effect with CACTX (term October 1, 2024 - September 30, 2025). In review of VOCA expenses claimed in the Center's monthly RFR's, the following exceptions were noted for payments made in connection with contracts: - 3 instances in which amounts claimed in the respective RFRs were for a license, subscription or policy period extending beyond the contract term. The Center correctly calculated the portion of cost pertaining to the current contract; however, the full amount was claimed within the month of payment. The cost should have been amortized and claimed within the RFR for each applicable month the contract was in place. - 2 instances in which amounts claimed in the respective RFRs were less than the total invoiced and paid amount eligible to be claimed. The Center did not adhere to the accrual basis of accounting required to be applied to costs claimed on its monthly RFRs submitted to CACTX. Under the accrual method, prepaid contracts should be amortized over the contract term (benefit period). Consequently, costs were inappropriately included/excluded in the Center's monthly RFRs submitted to CACTX. None reported