Finding Text
Reference Number: 2024-002
Assistance Listing Number: 97.024
Compliance Requirements: Allowable Costs/Cost Principles
Criteria: The Organization should have internal controls over expenditures to ensure that policies and procedures are in place to support the allowability of expenditures in accordance with 2 CFR § 200.302.
Condition and Context: The Organization provided humanitarian assistance to migrants and asylum seekers turned over by Customs and Border Protection (CBP), including meals, transportation and shelter at hotels and the Organizations Respite Center. The Organization has intake procedures in place with respect to hotel shelter expenditures. However, the intake process was not consistently applied to all participants. The Organization was not able to provide supporting documentation for 5% of the requested sample of individuals who received shelter.
Effect: The allowability of certain expenditures was not fully supported by underlying documentation. We detected an error rate of 5%, which resulted in an extrapolated questioned cost of $48,502.
Cause: There was an unprecedented influx of migrants requiring processing within a compressed timeframe, the program’s primary objective was to expedite assistance. This urgency, while addressing immediate humanitarian needs, resulted in some procedural oversights.
Questioned Costs: $48,502.
Management Response: See Corrective Action Plan.