Finding 404805 (2023-004)

Questioned Cost: $30,520. Criteria: The regulation in 2 CFR 200.77 sets forth that the Federal awarding agency or pass-through entity must include start and end dates of the period of performance in the Federal award. The Period of Performance represents the time during which the non-Federal entity may incur new obligations to carry out the work authorized under the Federal award. Condition: Funding totaling $30,520 was paid to a subrecipient for costs incurred prior to the grant’s period of performance start date. Cause: The County had a contract with the subrecipient that spans several periods. Views of Responsible Officials and Planned Corrective Actions: The County agrees with this finding and will implement revised policies and procedures to ensure all pre-award payments will be dated during the 2-year award period. Effect: The request for reimbursement to the Federal agency by the County included costs prior to the grant’s period of performance start date. Repeat Finding: Repeat finding of 2022-002. Auditor's Recommendation: The County should review procedures for tracking grant timelines to ensure funding requests from the federal agency and reimbursements to subrecipients relate to costs within the dates set forth in the grant agreements executed with the Federal entity.