FAC Explorer

Finding 485777 (2023-005)

- Repeat Finding
Requirement
H
Questioned Costs
$1
Year
2023
Accepted
2024-09-05
Audit: 318604
Organization: Town of Winchendon, Massachusetts (MA)
Auditor: Roselli Clark and Associates

AI Summary

  • Core Issue: The Town charged costs for services performed before the federal award approval dates.
  • Impacted Requirements: This violates 2 CFR section 200.309, which mandates that only allowable costs during the performance period can be charged to federal awards.
  • Recommended Follow-up: The Town should establish better monitoring procedures for award approval dates to ensure compliance with federal guidelines.

Finding Text

2023-005 U.S. Department of Education Passed-through the Commonwealth of Massachusetts Department of Elementary and Secondary Education Special Education Cluster – ALN(s) 84.027 & 84.173 COVID-19 - Special Education Cluster – ALN(s) 84.027X & 84.173X Criteria: Per 2 CFR section 200.309 of the Uniform Guidance, a non-federal entity may charge to a Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award that were authorized by the Federal awarding agency or pass-through entity. Condition: Invoices were charged for services performed prior to the award approval dates by the pass-through agency. Cause: Invoices were not provided in a timely manner by vendors nor were services dates properly identified by the Town. Numerous payroll entries were recorded to correct prior year findings and close out grants with some payroll being outside the period. Effect: The Town expended funds outside of the period of performance which resulted in questioned costs. Questioned Costs: $36,266.50 Repeat Finding from Prior Year: Finding 2022-002. Recommendation: The Town should implement procedures to properly monitor award approval dates to ensure that goods and services charged to federal grants occur during the period of performance. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Condition: Invoices were charged for services performed prior to the award approval dates by the pass-through agency. Corrective Action Planned: At the recommendation of the Town auditors, the business office keeps its own records of grant revenues and expenses and verifies the accuracy of those entered by the Town Accountant's office. These records also contain the period of performance for each grant, which has helped to ensure spending is kept within the correct dates. The School Business Manager reviews all requisitions for accuracy to verify expenses are being charged to the correct grants or funding sources. Anticipated Completion Date: Spring of 2024 Contact: Liz Latoria, School Business Manager

Categories

Questioned Costs Period of Performance Subrecipient Monitoring Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.10M
84.425 Education Stabilization Fund $620,099
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $279,729
10.553 School Breakfast Program $237,508
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $143,030
84.027 Special Education_grants to States $60,716
66.040 State Clean Diesel Grant Program $43,934
10.555 National School Lunch Program $31,080
84.010 Title I Grants to Local Educational Agencies $24,628
84.367 Improving Teacher Quality State Grants $11,416
84.173 Special Education_preschool Grants $1,937
84.424 Student Support and Academic Enrichment Program $1,852