Finding Text
U.S. Department of Health and Human Services, California Department of Social Services
Federal Financial Assistance Listing/CFDA Number 93.575
Award Year 2022/23
Child Care and Development Fund Cluster
Compliance Requirement: Allowable Costs/Cost Principles
Type of Finding: Significant Deficiency in Internal Control and Instance of Non-Compliance
Criteria:
Title 2 CFR Section 200.302(b)(7) of the Uniform Guidance requires all non-Federal entities establish written procedures to implement the requirements for determining the allowability of costs in accordance with Subpart E – Cost Principles and the conditions of the Federal award.
Condition:
The Commission has not established written procedures for determining allowability of costs in accordance with Subpart E – Cost Principles or the conditions of the Federal award.
Cause:
The Commission’s procedures did not ensure the required written procedures were developed and implemented in accordance with the Uniform Guidance.
Effect:
The Commission has not complied with Title 2 CFR Section 200.302(b)(7) regarding establishing written procedures for determining the allowability of costs.
Questioned Costs:
None reported.
Context:
The condition noted above was identified during our procedures related to allowable costs.
Repeat Finding from Prior Year:
Yes – 2022-001
Recommendation:
We recommend the Commission establish policies and formalize written procedures related to allowable costs in accordance with Subpart E – Cost Principles.
Views of Responsible Officials:
Management agrees. See separately issued Corrective Action Plan.