Finding Text
Disaster Assistance Projects; 97.088; pass-through Volunteer Florida, Program Year 2023. DR 4673-FL; U.S. Department of Homeland Security
Criteria or Specific Requirement - Allowable Costs/Cost Principles - 2 CFR Part 200, Subpart E – Expenditures must conform to any limitations or exclusions set forth in the cost principles or in the Federal award as to type of expenditure.
Condition – Endeavors’ expensed activities related to utilities and facility services that were not an approved type of cost in the budget submitted to the pass-through agency.
Known Questioned Costs – $1,186. Questioned costs were determined by the amount of known expenses within sample that were not a specifically approved type of cost in the budget submitted to the pass through agency.
Context – Out of 594 expenditures, a sample of 25 was selected for testing and 4 were not considered types of allowable activities. The sample was not intended to be, and was not, a statistically valid sample.
Effect – Expenditures were submitted for reimbursement that do not have support for allowability.
Cause – Endeavors did not have formal documentation that the types of expenditures were approved in a formal amended budget. Internal controls were not in place to ensure federal awards were expended only for approved budgeted allowable activities.
Identification as a repeat finding – Not a repeat finding.
Recommendation – Endeavors should maintain formal documentation of any amendments to budget agreements related to the grant agreement. Policies and procedures over grant expenditures should be modified to ensure that allowable costs have sufficient supporting documentation that is retained in accordance with grant requirements.
Views of Responsible Officials and Planned Corrective Actions – We agree with the finding. See separate report for planned corrective actions.