Finding Text
Condition: The Organization did not adequately document draw down requests or present the federal award revenue in accordance with GAAP. Criteria or specific requirement: Activities Allowed/Unallowed and Cost Principles (45 CFR 75.403(g)) requires costs to be adequately documented. Questioned Costs: $49,402Effect: Grant funds were used for nonallowable expenses as defined within the grant agreement Cause: The Organization did not use grant funds under this award for allowable costs as defined within the grant agreement. Identification: Not a repeat finding Recommendation: Management should solidify grants management procedures, specifically regarding the documentation of drawdowns of grant funds and review expenditures allowed and unallowed per the terms of the grant agreement. Management?s view: Management agrees with the condition described. Proposed corrective action: The finance department has already implemented a process in which the Chief Financial Officer reviews the documentation for expenditures allowed and unallowed under the terms of the grant agreement, and the drawdown happens only when the amount of allowed expenditures has been determined. Anticipated correction date: This has already been implemented retroactively effective January 2023. Responsible official: Gabriela Cordero, Chief Financial Officer.