Finding Text
Finding: 2024-002 Program Title: Congressionally Funded Community Projects Assistance Listing: 84.215K Contract Grant Number: S215K230172 Federal Award Years: July 1, 2023 to May 31, 2025 Federal Agency: U.S. Department of Education Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Other Noncompliance Criteria: Uniform Guidance 2 CFR section 200.403 and 2 CFR 200.404 require that costs charged to federal awards be allowable, reasonable, allocable, and adequately supported. Condition: During testing of allowable costs, we selected a non-statistical sample of expenditures charged to the program. The sample included a cost that was adequately supported by invoices and payment documentation; however, the nature of the cost was not allowable under the terms of the federal award. Specifically, the Organization charged costs totaling $695 for late fees and penalties to the federal program. Cause: The Organization’s control failed to properly detect the unallowable cost prior to being charged to the award. Effect: As a result of these conditions, nonallowable costs were charged to the federal program, resulting in likely questioned costs of $26,656. Repeat Finding: No Recommendation: We recommend that the Organization provides training to personnel responsible for coding and approving federal expenditures. Views of Responsible Officials: Management agrees with the finding and has developed a corrective action plan to address the issues noted.