Community Service Block Grant– Assistance Listing No. 93.569
During our testing of costs recorded during the beginning of the approved period of performance (January 2022), we noted there were two transactions charged to the federal program in January 2022 for utility costs. Based on the review of the supporting invoices costs were incurred prior to the beginning of the performance period in November and December 2021. The total amount of the transactions was $1,370.49.
Recommendation: The organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices into the accounting software to ensure the correct period is used.
Explanation of disagreement with audit finding: There is no disagreement with the audit finding.
Action planned/taken in response to finding:
Upon discovery of costs incurred prior to the approved performance period. The first step involves meticulously examining the documentation to verify the timing of the expenses and identify any ineligible costs. Following this, the organization will transparently communicate the issue with the funding agency, providing a detailed explanation of how the error occurred and expressing commitment to resolving it.
Guidance will be sought from the funding agency on the appropriate steps to take, with a focus on reconciling the total amount of costs incurred before the performance period and adjusting the grant budget accordingly to exclude these expenses. If any funds were already disbursed for the ineligible costs, efforts will be made to reimburse the funding agency or adjust future disbursements as necessary. To prevent similar issues in the future, internal controls will be reviewed and strengthened, including implementing stricter procedures for expense approval and providing training to staff involved in grant management. Detailed documentation of all corrective actions taken will be maintained, and continuous monitoring of expenses and adherence to grant requirements will be conducted throughout the remainder of the performance period to mitigate any potential compliance risks. Through diligent implementation of this corrective action plan, the organization aims to address the issue effectively and prevent funds from being required to be returned to the funding agency.
Name(s) of the contact person(s) responsible for corrective action: Dawn Godshall, Executive Director
Planned completion date for corrective action plan: Planned completion date is June 30, 2024.