Finding 1237691 (2025-001)

FINDING NO. 2025-001: Assistance Listing No. 10.968 and 10.443 - Activities Allowed or Unallowed; Allowable Costs/Cost Principles Condition: Program expenses were approved via budget documents and during program director meetings. Criteria: Program expenses should be approved by the appropriate personnel on an individual basis as incurred. Cause: A director reviewed budgeted expenses with program managers, who then proceeded with purchases within budget limitations. Effect: Program expenses were not reviewed on an individual basis as incurred, and unallowable costs may have been charged to the grant. Context: A sample of seven non-payroll items was reviewed, and no unallowable costs were detected. Recommendation: Any expenses that are associated with a federal grant should be approved by the appropriate program manager on an individual basis as incurred. Views of Responsible Officials and Planned Corrective Actions: This matter was corrected during the year ended December 31, 2025 upon receipt of the 2024 audit findings. All expenditures were properly approved after this correction.