Finding Text
2023-001 ALLOWABLE COST, CASH MANAGEMENT, AND PERIOD OF PERFORMANCE - SIGNIFICANT
DEFICIENCY
Federal Program
Unaccompanied Alien Children Program ALN 93.676
Criteria
Part 3 of the Compliance Supplement indicates non-federal entities must minimize the time elapsing between
the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity
for direct program or project costs and the proportionate share of allowable indirect costs, whether the
payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by
other means (2 CFR section 200.305(b)).
Part 3 of the Compliance Supplement indicates a non-federal entity may charge only allowable costs incurred
during the approved budget period of a federal award’s period of performance and any costs incurred before
the federal awarding agency or pass-through entity made the federal award that were authorized by the federal
awarding agency or pass-through entity (2 CFR sections 200.308 200.309 and 200.403(h)). A period of
performance may contain one or more budget periods.
Condition/Cause
In July 2022, the Home requested reimbursement and received funding to cover costs that had not yet been
incurred or paid for as of June 30, 2023.
Effect
The Home was reimbursed for costs that were not incurred during the budget period. Additionally, the Home
has held onto grant funds for twelve plus months.
Questioned Costs
Known questioned costs are $52,841.
Context
The Home budgeted to have new fire alarms installed in the cottages during the July 1, 2021 - June 30, 2022
grant budget period. Due to supply chain issues and labor shortages the alarms were not installed until the Fall
of 2023 at which time the Home paid the contractor.
Repeat Finding
No.
Recommendation
We recommend the Home contact the funding agency to inquire about returning the funds and any interest
earned. We also recommend that the Home revisit and strengthen internal controls over allowable activities,
allowable costs, cash management, and period of availability related to grant programs.
Management Response
See corrective action plan included in this report package.