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Finding FA 2022-004: Activities Allowed or Unallowed and Allowable Costs / Cost Principles: Expenditures Recorded In Incorrect Period Federal Program Information Federal Catalog Number: ALN 17.268 Federal Program Name: H-1B Job Training Grant Federal Agency: U.S. Department of Labor Passed Through Entity: N/A Federal Award Number: HG-33046-19-60-A-6 Federal Award Year: July 1, 2021 to June 30, 2022 Campus: West Los Angeles College Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs / Cost Principles Criteria or Specific Requirement: Per Title 2, Part 200, Subpart E, ?200.403- Factors affecting allowability of costs, except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: (e) Be determined in accordance with generally accepted accounting principles (GAAP), except, for state and local governments and Indian tribes only, as otherwise provided for in this part. Identified Condition: At West Los Angeles College, we noted that 2 out of 25 expenditures sampled were recorded in the incorrect period, for a total of $146,328. The expenditures were related to subrecipient payments that were incurred in fiscal year 2021 but were incorrectly recorded in fiscal year 2022. Causes and Effect: Per inquiry with the District, the cost is still within the program?s period of performance. The grant period is from July 15, 2019 to June 30, 2024. For the year ended June 30, 2021, the program team did not have a monitoring control in place to ensure expenses were recorded in the correct period. As a result, some expenses incurred near the end of the fiscal year are reported in the incorrect period. Questioned Costs: None. Recommendation: We recommend that the District implement a monitoring control that would identify expenditures incurred near the end of the fiscal year and ensure that they are recorded in the proper period. Views of Responsible Officials and Planned Corrective Actions: The Accounting Office will require all program personnel to complete a checklist of all expenditures incurred close to the end of the fiscal year in order to identify any expenditures that need to be accrued. Personnel responsible for implementation: Nyame-Tease Prempeh Position of responsible personnel: Assistant Director of Accounting Date of Implementation: July 1, 2023