Finding Text
2024-006 Questioned Cost – Employee Stipends (Federal Single Audit)
Criteria: Expenditures made with both state and federal grant funds for employee
compensation should be reasonable in consideration of job responsibilities.
Condition Found: During our review of employee compensation paid with state and federal grants, we
noted several instances of stipends paid to employees, including administrators, that
appeared excessive in consideration of job titles and traditional assigned duties.
Cause: The cause is believed to be from an overly broad interpretation of how budgeted
stipends could be allocated across staff.
Effect: The effect is a potential misuse of grant funds ultimately to be determined by the
grantor.
Recommendation: We recommend more transparency in the process of awarding employee stipends in
the future.