Finding Text
Federal Program Information: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027)
Transitional Living for Homeless Youth (ALN 93.550)
Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): B. Allowable Costs: In accordance with 2 CFR § 200.403(e), costs must be determined in accordance with generally accepted accounting principles. Additionally, costs must be adequately documented (2 CFR 200.403(g)).
Condition: For 3 out of the 26 transactions selected for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program, the expenditures were recorded for an inaccurate amount.
For 1 out of 25 transactions selected for the Transitional Living for Homeless Youth program, the expenditure was not accrued in the appropriate fiscal year in accordance with U.S. GAAP.
Cause: Administrative oversight in expenditure review caused inaccurate recording of expenditures. Additionally, the Organization did not have policies in place to review year-end grant expenditures for proper cutoff below a certain threshold.
Effect or Potential Effect: The Organization was not in compliance with allowable cost requirements.
Questioned Costs: Below reportable threshold.
Context: Federal expenditures must meet allowable cost requirements in accordance with 2 CFR 200.
Identification as a Repeat Finding: No similar findings noted in the prior year.
Recommendation: We recommend the Organization enhance its procedures over allowable costs.
Views of Responsible Officials and Planned Corrective Actions: An additional level of review by Director of Finance and Business will be added to ensure accuracy of expenditures. Management will add additional controls to year end check list to identify and accrue any expenses incurred on or prior to year end.