Finding Text
2024-001 Allowable Compensation Costs
Material Weakness in Internal Control Over Compliance
16.575 Crime Victim Assistance
Criteria – 2 CFR Section 200.403 states that costs must be necessary and reasonable for the
performance of the federal award. Costs must also conform to any limitations or exclusions set
forth in the federal award as to types or amount of cost items. In addition, 2 CFR Section
200.430 states that charges to federal awards for salaries and wages must be based on records
that accurately reflect the work performed. These records must be supported by a system of
internal control that provides reasonable assurance that the charges are accurate, allowable, and
properly allocated.
Condition and Context – Through a financial review by a pass-through entity, compensation
costs of $32,302 were identified as unallowed under the terms of the federal award for the budget
period July 1, 2023 to June 30, 2024. These costs included $19,259 in calendar year 2023 and
$13,043 in calendar year 2024.
Cause – CCAHT did not have internal controls in place to ensure that salaries and wages
claimed for reimbursement was accurate, allowable, and properly allocated.
Effect – CCAHT submitted salaries and wages for reimbursement that were unallowed under the
terms of the federal award.
Questioned Costs – This resulted in known questioned costs of $32,302.
Repeat Finding - No
Recommendations – We recommend CCAHT implement internal controls to ensure all costs
charged to the program are accurate, allowable, and properly allocated in accordance with the
terms of the federal award, and that there is proper review and approval.
Management’s Response – Management concurs with the audit recommendations. See
Management’s Corrective Action Plan.