Finding Text
Assistance Listing Number 93.550 – Transitional Living for Homeless Youth
U.S. Department of Health and Human Services
Criteria
Federal program requirements require the grant recipient agency to retain information sufficient to support the costs for which it has requested reimbursement. Information should be sufficient to support the allowability of the cost under the federal program and that the costs have not been utilized under a separate federal program.
Condition
Expenses for the transitional living program are not segregated to an individual cost center, but rather recorded within a broader program budget. Monthly, the Organization’s billing department manually determines costs specifically associated with the transitional living program. However, these calculations were not maintained and staff were unable to recreate the supporting schedules for the amounts billed for non-payroll related costs.
Cause
Internal processes of the billing department did not require staff to retain schedules for the amounts billed. Turnover within the department since year end resulted in new staff assigned to the grant being unable to recreate the detail prepared by their predecessor.
Effect
The Organization is unable to support non-payroll costs reimbursed under the grant during the fiscal year ended June 30, 2023, totaling approximately $167,000.
Recommendation
Billing methodologies should be documented within a centralized location so as to allow other staff members to access and review the methodologies. Support should be retained for all balances requested for reimbursement.