Finding Text
Section III – Major Federal Awards Programs – Findings and Questioned Costs (Cont.) Finding 2025-006: Activities Allowed or Unallowed / Allowable Costs - Insufficient Budget-to Actual Reviews (Material Weakness) Federal Program : Grants for Transportation of Veterans in Highly Rural Areas Assistance Listing Number : 64.035 Criteria: Under 2 CFR 200.302(b)(5) and established internal control frameworks such as COSO, entities must compare actual expenditures to budgeted amounts to ensure proper financial management and compliance with award terms. Condition: Budget-to-actual analyses were not consistently performed or documented for certain Federal programs. Cause: The Center lacks a formalized review schedule and adequate documentation procedures. Effect: Failure to identify variances may result in overspending, underspending, or misclassification of Federal program costs. Recommendation: Management should implement formal, periodic budget-to-actual reviews supported by standardized documentation requirements. Repeat Finding: This is a repeat finding.