Finding Text
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
Assistance Listing Number(s): 93.044, 93.045, and 93.053
2022-004: Telecommunication Expenditures
Criteria: In accordance with 2 CFR Part 200, Subpart E (Cost Principles), expenditures relating to telecommunication costs and video surveillance costs are unallowable for nonprofit organizations.
Condition: Of the 60 transactions examined, 16 expenditures were for telecommunication costs.
Effect: The Corporation did not adhere to 2 CFR Part 200, Subpart E (Cost Principles) and unallowable expenditures were made with grant funds.
Cause: The Executive Director and Fiscal Officer were not aware that 2 CFR Part 200, Subpart E (Cost Principles) had been updated to include telecommunication costs as an unallowable expenditure. This update was effective for the 2021 Compliance Supplement, which was in effect for audits of fiscal years beginning after June 30, 2020. The Corporation was awarded the grant contract from Northwest Georgia Regional Commission with an approved budget period from 2021 – 2024.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that the Executive Director and Fiscal Officer review 2 CFR Part 200, Subpart E (Cost Principles) annually for various cost items to ensure that expenditures are allowable.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 in this audit report.