Finding Text
Information on the
Federal Program: Federal Agency: U.S. Department of Health and Human Services
Program Name: Temporary Assistance for Needy Families
AL: 93.558
Federal Award Year: Year Ended June 30, 2023
Federal Agency: U.S. Department of Health and Human Services
Program Name: Social Services Block Grant
AL: 93.667
Federal Award Identification Number: 1051598, 1054074, 1051526, 1054065
Federal Award Year: Year Ended June 30, 2023
Specific Requirement: The cost principles in 2 CFR, Part 200, Subpart E (Cost Principles) are required for the administration of federal awards of Nonprofit organizations.
Condition Found: During our audit, we noted the Association had charged the following expenditure to the grant that were deemed to be unallowable based on the Cost Principles:
- An increase to the allowance for payment adjustment recorded as bad debt expense for a total of $372.
During our audit, we noted that Association had charged the following expenditures to the grant that were deemed to be unallowable with restrictions. We did not see any further guidance in the grant agreement to determine these were allowable costs:
- License and rental fees paid to participate in the State of New Hampshire Charitable Gaming program of $2,125.
Context: We sampled 40 expense transactions under the Social Service Block Grant and 15 expenses under the Temporary Assistance for Needy Families Grant and noted three transactions that were not consist with the Cost Principles.
Questioned Costs: $2,497
Cause and Effect: The Association was unaware of the Allowable Costs and Cost Principles requirements as it relates to expenditures charged to the grant.
Identification as a
Repeat Finding,
if Applicable: N/A
Recommendation: We recommend the Association implement a process to review all expenditures that are charged to the grant to verify that are allowable under the Federal Cost Principles.
Views of a Responsible
Official and Corrective
Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan on page 39.