Finding Text
Information on the Federal Program: Supportive Services City Meals and Wheels 93.044
Criteria:
Human Services Contract Section 3.04: Cost allocating and duplication-Contractor shall accurately and
equitably allocate costs that are attributable to the operation of two or more programs, or that are
attributable to two or more governmental funding sources.
Per Cost Principles. It is essential that proper documentation be maintained to support the allocation of a
cost to a contract, program, funding source and cost category.
Condition:
As noted in Section 11 Finding 2023-002, I selected a random sample of payroll costs, employee benefits
and other than personnel costs allocated to the grant and tested for improper allocation of costs,
unallowable costs, or misclassification of transactions. I noted inconsistent cost allocations of several
OTPS in my sample test.
Cause
Each month the cost allocation% for several OTPS vendors are changed based on the units delivered during
the month. In other instances, the basis of the % changes are not documented and are based solely on verbal
instructions given by the executive director or programs director to accounting staff.