Finding Text
Finding No. 2025-002: Allocation of Shared costs Federal agency : Department of Treasury Assistance Listing Number: 21.023 and 21.027 Federal Programs: Emergency Rental Assistance Program and Coronavirus State And Local Fiscal Recovery Funds Type of Finding: Significant Deficiency Condition: During the audit, Pro Bono Resource Center of Maryland, Inc. failed to allocate shared costs in two cases (rent and accounting fees) between programs and other grants related to rent and accounting fees and charged the full rent and accounting fees to the grant instead of allocating them across the functions and grants in accordance with the functions which benefitted from these expenditures. Criteria: 2 CFR 200.405(d) Internal control over compliance requirements for federal awards requires processes to be implemented to provide reasonable assurance regarding the allocation of cost to projects is based on the proportional benefits. Cause: Although Pro Bono Resource Center of Maryland, Inc. has policies for cost allocation in place, in this instance those policies were either not followed or not in line with 2 CFR 200.405(d). Effect: Expenditures was or may have been be charged to grants in a manner that was not in proportion with the grants which benefited from the corresponding expenditures. Repeat Finding: No Recommendations: Procedures should be followed requiring reasonable basis for cost allocation and transactions should be reviewed by an individual with sufficient experience in accounting to be able to identify misstatements. Corrective Action: See Corrective Action Plan