Finding 525266 (2023-005)

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

AI Summary

  • Core Issue: Some financial aid recipients may not have qualified for assistance under the SLFRF ARPA Scholarship Program.
  • Impacted Requirements: Unallowable costs were charged, including aid to children of employees and missing eligibility documentation.
  • Recommended Follow-Up: Strengthen controls to verify eligibility and ensure proper documentation is maintained for all recipients.

Finding Text

Criteria or Specific Requirement – A portion of the funds received under the SLFRF ARPA Scholarship Program was to provide financial aid to children of Boulder County residents who are low-income and/or historically marginalized who have disparate access to childcare services. Conditions – Unallowable costs may have been charged to the program. Context – In our testing of financial assistance provided, we selected 25 recipients who in total received $11,384 in financial aid. The grant was for a total of $500,000 of which $350,000 was for financial aid. In our sample, we found the following instances in which the recipients of financial aid may not have been eligible: • 3 of the recipients of financial aid were children of employees of the Organization. Financial aid of $3,333 was provided to these recipients without verification of eligibility. • For 7 of our selections totaling $2,216, documentation was not on file to support eligibility. Cause – Established controls for determining allowable activity were not adequate. Effect – Employee childcare 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 Eligibility

Other Findings in this Audit

  • 525262 2023-001
    Material Weakness
  • 525263 2023-002
    Material Weakness Repeat
  • 525264 2023-003
    Material Weakness Repeat
  • 525265 2023-004
    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