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Finding No. 2025-003: Period of Performance – Noncompliance Federal Program Name: Juvenile Mentoring Program Pass-through Entity: None Federal Assistance Listing Number: 16.726 Type of Finding Significant Deficiency in Internal Controls over Compliance Other Matters Criteria Uniform Guidance requires that only costs incurred during the approved period of performance are allowable and chargeable to a federal award set forth in 2CFR §200.403, Factors Affecting Allowability of Costs, and §200.309, Period of Performance. Costs incurred prior to the final approval of the program budget must have appropriate written authorization from the awarding agency to be considered allowable. The Department of Justice requires receipt of final approved program and budget documentation before costs can be charged to the award. Condition The Partnership incurred and charged program costs to the federal award prior to receiving final program budget approval from the Department of Justice. Specifically, $25,706 in program costs were incurred from October 1, 2022 through April 25, 2023, as the final budget approval was granted on April 26, 2023. Cause The Partnership did not have adequate internal controls to ensure that program expenditures were incurred during the approved time frame. Program and fiscal staff did not verify the award and budget approval status prior to authorizing or charging costs to the award. Effect The Partnership charged costs to the federal award outside of the approved period of performance, resulting in noncompliance with Uniform Guidance and award requirements. This resulted in questioned or disallowed costs, required repayment of federal funds, and potential impacts on future federal funding. Questioned Costs Costs charged to the grant during fiscal year 2023 prior to the final approval of the program budget on April 26, 2023 are considered disallowed and amount to $25,706. Context Uniform Guidance requirements set forth in 2CFR §200.403, Factors Affecting Allowability of Costs, and §200.309, Period of Performance, state that only costs incurred during the approved period of performance are allowable and chargeable to a federal award. The Partnership must obtain formal budget approval from the federal agency prior to incurring costs to the program. Repeat Finding No