Finding Text
Criteria: The Uniform Guidance Subpart E provides the general provisions for allowable cost principles. Under the cost principles, expenses incurred must be ?measurable? and ?reasonable.? Condition: During our audit we noted the occurrence of gift card purchases, indicating that they were to be used for food purchases. However, there was no documentation that gift cards purchased by the Organization were ultimately used for purchases that were in compliance with applicable cost principles. Cause: Management?s understanding of the cost principles has not been fully developed. Effect: The Organization charged expenditures that did not meet the applicable cost principles to the Emergency Solutions Grants Program. Questioned Cost: $12,158. Recommendation: The Organization discontinue the practice of purchasing gift cards and maintain documentation to support all expenditures of program funds. We additionally recommend that management overseeing this program be provided training to improve their understanding of cost principles and allowable costs. Views of Responsible Officials: See Corrective Action Plan