Finding 380498 (2023-003)

Allowable Costs Information on Federal Program: Unaccompanied Alien Children (Assistance Lising No. 93.676) provided by the Department of Health and Human Services. Criteria: 2 CFR Part 200 Section 200.403(e) states that in order for costs to be allowable under federal awards they must be determined in accordance with generally accepted accounting principles (GAAP). 2 CFR Part 200 Section 200.403(h) states that costs must be incurred during the budget period. Condition: During our testing of compliance related to allowable costs for award 90ZU041701 it was determined that costs related to the previous award (90ZU027903) period were not claimed in the amount of $349,082. Questioned Cost: None Cause: The Home did not have a procedure in place to reconcile and review that claims included all allowable expenses and that all claims were made prior to the close out of the award period. Effect: Award 90ZU027903 was under-claimed by $349,082 based on allowable costs. Perspective Information: Upon commencing employment, the new Chief Financial Officer implemented a process to review allowable costs on a weekly basis, with a year-todate review done weekly in addition. Repeat Finding: No Recommendation: We recommend the Home implement a procedure to review and reconcile that all claims for each individual award are submitted. Views of the Responsible Officials and Planned Corrective Actions: With the transition to a new CFO, allowable costs are now reviewed on a weekly basis, in addition to a year-todate review being done weekly, by award.