Recommendation: We recommend management implement procedures to ensure that unallowable costs are not charged to federal grants.
Explanation of disagreement with audit finding: There is no disagreement with the audit finding.
Action planned in response to finding:
We will provide supplementary training focused on the accurate allocation of costs to federal awards, as well as the identification and separation of unallowable costs from allowable costs.
We will develop and implement detailed processes and procedures to ensure effective oversight and control of disbursements. These processes will require initial approval from the department head for all disbursements. Subsequently, the compliance team will conduct a secondary review and approval. Finally, all disbursements will necessitate final approval from the CFO/CEO before being processed for payment. This multi-step approval process is designed to ensure proper allocation of costs to federal grants.
Name(s) of the contact person(s) responsible for corrective action: Department Head, Jan Warren/Amber Henderson (Compliance), Haydee Hill (CFO), Sharon Brown (CEO).
Planned completion date for corrective action plan: December 31, 2024