Finding Text
2022-006 Department of Agriculture Federal Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster American Rescue Plan (ARP) Economic Development Grant for Rural Health Care Facilities Allowable Costs Significant Deficiency in Internal Control Over Compliance and Noncompliance Criteria: The Letter of Conditions indicates that the applicant?s contribution of funds towards the project costs, which totals 25% of the total project costs, shall be considered the first funds expended. Condition: Management calculated the applicant?s contribution as 25% of the funds requested for reimbursements instead of applying the full contribution to the requested reimbursement. Cause: Management was unaware the full contribution was required to be expended first. Effect: The Organization requested reimbursement for costs which were not allowable, totaling $57,500. Questioned Costs: $57,500 Context/Sampling: The entire population of allowable costs was tested consisting of one transaction. Reporting Finding from Prior Year: No Recommendation: We recommend management develop a process to ensure all conditions of grant agreements are met and costs are allowable. Views of Responsible Officials: Management agrees with the finding.