Finding Text
Fiscal year finding initially occurred: 2022
Research and Development Cluster (93.859)
PB210037-HBR-02
CRITERIA: Costs charged to federal grant programs must follow the Uniform Guidance (Guidance). Section 200.403 of the Guidance requires that the costs be adequately documented in order to be an allowable cost.
CONDITION: The Organization was unable to provide documentation to support that the salaries requested under this grant were incurred by the Organization. In addition, based on the financial records of the Organization, no salaries were paid for the 2022 fiscal year, which included the time period of request. The Organization had $61,092 of unsupported salaries and related indirect costs, which is considered questioned costs.
CAUSE: The Organization does not have internal controls in place to ensure compliance with the Uniform Guidance.
EFFECT: The Organization requested reimbursement for unsupported salaries and related indirect costs from the grantor.
RECOMMENDATION: The Organization should ensure the individuals administering federal programs are properly trained on the requirements of the Uniform Guidance.
MANAGEMENT’S CORRECTION ACTION PLAN: The audited period was a time of rapid growth and transition for the Mayor’s Healthy City Initiative. The staff was very small and the Executive Director role was vacant for an extended period of time.
The Executive Director role has been filled and the role of our external accountants has been expanded to offer additional assistance. Management is working to ensure that the individuals working on administering federal programs are properly trained on the requirements of the Uniform Guidance.