Finding Text
Information on the federal program:
Community Development Block Grant, CFDA #14.218, Grant Period 1/1/22-12/31/22
Compliance/Internal Control over Compliance: Allowable Costs
Criteria or specific requirement:
Charges to federal awards for administrative related expenditures be supported by detailed documentation and eligible expenses should be charged to the applicable program year.
Condition:
There were equipment rental charges being posted to administration for which supporting documentation could not be provided. Withdrawals from the administrative grant allotments were not in agreement with charges incurred.
Questioned costs:
Undetermined
Context:
During our review of budgetary expenditures, we found that rental charges for equipment were not substantiated to actual equipment location. Administrative drawdowns through IDIS were also not in agreement with the actual budgetary expenditures resulting in an insufficient drawdown of approximately $65,527.
Effect:
Administrative expenditures are not accurately charged to administration nor are drawdowns through IDIS in agreement with actual expenditures.
Cause:
Drawdown procedures concerning administrative costs (payroll and other expenses) are not performed ratably as expenses are incurred; procedures are not in place to ensure the correct employees and corresponding salaries are being allocated correctly.
Recommendation:
Drawdowns through IDIS for payroll and other administrative charges be made as incurred; employee charges be reviewed periodically to ensure the correct employees’ payroll is being charged to the grant and a review of equipment rental charges be made to determine the actual equipment in use by the department. Management’s response:
The Township of Bloomfield, Department of Community Development, will initiate drawdowns based on actual expenditure activity as incurred on a regular basis and perform a review of salaries and other administrative costs to ensure all departmental expenses are being charged correctly.