Finding Text
Finding 2023-003 Expenditures overclaimed for DOL grant AD-38314-22-60-A-6
Criteria: Per 2 CFR Part 200, Appendix XI, Compliance Supplement May 2023, Part 3, cost principles for nonprofit organizations:
Costs were necessary and reasonable for the performance of the federal award and allocable under the principles of 2CFR 200. Subpart E.
Condition: Per the Association’s expenditures details, grant expenditures for FY22-23 for the DOL grant number AD-38314-22-60-A-6 were $9,378,107. Total payment requests and cash receipts for the grant were $9,399,510. The Association received $21,403 more than expenditures incurred for this grant.
Questioned Cost: $21,403.
Cause: The first payment draw request for the new FY23-24 DOL program expenditures was inadvertently drawn from the DOL FY22-23 account because the new FY23-24 grant account was not available yet for funding withdrawal at that time.
Effect: This will result in funds that should either be returned to the DOL or credited to future DOL programs.
Recommendation: We recommend that management return or credit the funds back to the DOL program.
Views of Responsible Officials: The Association’s management acknowledges the finding and will seek ways to return or credit the funds back to the DOL or DOL programs in FY23-24.