Finding 45035 (2022-002)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-10-01

AI Summary

  • Core Issue: An airline upgrade charge was made to the grant, violating travel cost rules.
  • Impacted Requirements: Costs exceeding basic airfare are unallowable under Subpart E ?200.475.
  • Recommended Follow-Up: Implement controls to ensure travel expenses comply with grant guidelines.

Finding Text

US Department of Health and Human Services Passed through the Idaho Department of Health & Welfare Program Name: Child Care & Development Block Grant Assistance Listing No.: 93.575 Grant Number: 2101IDC6 Finding: 2022-002 SIGNIFICANT DEFICIENCY Allowable Costs/Cost Principals Criteria: Subpart E ?200.475 Travel costs Airfare costs in excess of the basic least expensive unrestricted accommodations class offered by commercial airlines are unallowable. Condition: The Club charged an airline upgrade to the grant. Questioned Costs: None over $25,000. Context: Of the approximately 15 airline charges for approximately $4,000, we tested 4 in the amount of approximately $1,700 and found the one charge that was unallowable. Effect: There was a charge that was unallowable. Cause: There was not a control process in place to monitor the allowability of this category of expense. Recommendation: Processes should be in place to monitor the allowability of travel expenses charged to the program.

Corrective Action Plan

Views of responsible officials and planned corrective actions: Flight to Chicago for our National conference. Did not realize upgrading to economy plus for extra leg room was excessive as it fell within the parameters of our approved budget. In the future all employees traveling will adhere to the ?least expensive flight option? and will not charge any additional upgrades to the Federal grants program. We will also review other restrictions on travel for federal grants to ensure compliance.

Categories

Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 45034 2022-001
    Material Weakness
  • 45036 2022-003
    Significant Deficiency
  • 621476 2022-001
    Material Weakness
  • 621477 2022-002
    Significant Deficiency
  • 621478 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.575 Child Care and Development Block Grant $1.00M
10.558 Child and Adult Care Food Program $64,462