Finding 525264 (2023-003)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2025-03-03

AI Summary

  • Core Issue: Unallowable costs, specifically mileage expenses, were charged to the Child Care and Development Block Grant program.
  • Impacted Requirements: Management failed to implement adequate internal controls to ensure all costs are allowable.
  • Recommended Follow-up: Review and strengthen procedures for determining allowable non-payroll costs to prevent future issues.

Finding Text

Criteria or Specific Requirement – Management is required to ensure that costs charged to the program are allowable costs. This includes having internal controls that ensure that all costs are allowable costs. Conditions – Unallowable costs may have been charged to the Child Care and Development Block Grant program. Context – During our testing of allowable costs and activities, we noted that the Organization charged mileage expenses to the program, which may be unallowable. Sampled costs related to mileage was $2,345. Through further audit procedures we determined that total mileage costs charged to the program, which may be unallowable, was $12,907. Cause – Existing procedures surrounding the determination of allowable costs of non-payroll costs were not followed. Effect – Mileage was charged to the program which may be unallowable costs.

Corrective Action Plan

Recommendation – We recommend that management ensure that non-payroll costs charged to the program are allowable costs to ensure future compliance with applicable federal cost rules. Views of Responsible Officials and Planned Corrective Actions – All non-payroll costs are reviewed by a supervisor before being approved. This supervisor review includes which programs are being charged along with other internal coding. Management has emphasized the requirements for supervisors to review invoices to verify programs are being properly charged along with other internal coding.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 525262 2023-001
    Material Weakness
  • 525263 2023-002
    Material Weakness Repeat
  • 525265 2023-004
    Material Weakness
  • 525266 2023-005
    Material Weakness
  • 525267 2023-006
    Material Weakness
  • 525268 2023-007
    Material Weakness
  • 1101704 2023-001
    Material Weakness
  • 1101705 2023-002
    Material Weakness Repeat
  • 1101706 2023-003
    Material Weakness Repeat
  • 1101707 2023-004
    Material Weakness
  • 1101708 2023-005
    Material Weakness
  • 1101709 2023-006
    Material Weakness
  • 1101710 2023-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $993,207
93.575 Child Care and Development Block Grant $541,441
84.425D Education Stabilization Fund $114,776