Finding Text
Finding type: Material weakness in internal controls and on internal controls over compliance. Criteria: Management is responsible for ensuring all incurred costs are spent within the designated timeframe specified in the grant agreement for federal grants. Condition: During the compliance testing, it was noted that the obligation dates for expenditures charged to the grant were outside of the period of performance. Context: Funds were expended in the fiscal year on transactions with future obligation dates that fell outside of the award's designated timeframe. Cause of condition: The condition was caused by a misunderstanding between the grantor and the grantee on what was permitted to be expended during the period of performance. Effect of condition: As a result of this condition, there were disallowed costs charged to the grant that are required to be paid back. Questioned costs: $147,427 Likely Questioned Costs: $152,263 Recommendation: It is recommended that the United Way establish additional policies and procedures around the review of obligation dates to ensure that they are within the permitted timeframes of grants.