Finding Text
Finding 2023-008 – Activities Allowed (Significant Deficiency and Noncompliance)
Information on the federal program: U.S. Department of Veterans Affairs, Assistance Listing
#64.055 Staff Sergeant Parker Gordon Fox Suicide Prevention Grant Program.
Criteria: 2 CFR section 200.302 establishes the requirements for sufficient financial management
over grant funding to ensure funds have been used in accordance with Federal statues, regulations,
and terms and conditions of the Federal award. These requirements include that the nonfederal
entity compare expenditures with the approved award budget.
Condition: We tested 22 nonpayroll disbursements, 2 of those expenses did not fit into an expense
category in the approved award budget.
Cause: The Council began allocating nonreimbursable expenses to their grant codes to track the
true costs of running a program. This grant allowed for indirect costs, however these costs were
charged directly to the grant and were included in the amount requested for reimbursement and
also in the cost base used for the indirect cost calculation. These costs were not in line with the
categories of expenses in the award budget.
Effect: The Council did not comply with allowable activities requirements.
Questioned Costs: $1,901
Recommendation: We recommend the Council strengthen procedures over costs invoiced for
reimbursement to ensure those costs are compared to the grant budget for allowability.
Views of Responsible Officials: See Management’s View and Corrective Action Plan at the end of
the report.