Finding Text
Finding 2023-004
Significant deficiency in internal controls over compliance related to allowable costs and cost principles compliance requirements.
Federal Agency: All Awards reported on the schedule of expenditures of federal awards.
Program Title: All Awards reported on the schedule of expenditures of federal awards.
Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards.
Award Number: All Awards reported on the schedule of expenditures of federal awards.
Award Period: All Awards reported on the schedule of expenditures of federal awards.
Criteria
In accordance with 2 CFR 200.434, costs related to contributions and donations are unallowable costs.
Condition/Context for Evaluation
During the year ended June 30, 2023, we identified costs related to donations to other not-for-profit entities and organizations totaling approximately $143,350 that were included in the indirect cost pool.
Effect or Potential Effect
The Organization did not fully comply with the allowable cost principles as outlined in 2 CFR 200, Subpart E. As a result, the indirect cost pool for 2023 included unallowable costs.
Questioned Costs
Not determinable
Cause
The Organization’s internal controls did not ensure that all costs included in the indirect cost pool were allowable.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend that the Organization implement the necessary internal controls to ensure that only allowable costs are included in the indirect cost pool.
Views of Responsible Officials of Auditee
Management agrees with the finding and has provided the accompanying corrective action plan.