Finding Text
FINDING 2023-001 – Questioned Costs – Charges in Excess of Costs Incurred
Compliance Requirement(s): Allowable Costs
Grant Title(s): Applies to All Grants
Federal Award Number(s): Applies to All Assistance Listings
Federal Award Identification
Number and Year: N/A
Pass-Through Entity
Identifying Number: Applies to All Pass-Through Entity Identifying Numbers
Federal Agency: Applies to All Federal Agencies
CONDITION: During the course of our financial statement audit, we became aware of questioned costs related to Federal programs, which in the aggregate, exceed $25,000. The Agency inadvertently overcharged costs related to Worker’s Compensation and State Unemployment expenses across all Federal programs.
CONTEXT: We noted the Agency relied upon its accounting software to allocate costs related to Worker’s Compensation and State Unemployment expenses to Federal programs. However, the Agency did not adequately maintain internal controls to ensure that rates charged were aligned with actual costs being incurred. As a result, Federal programs were charged more than the actual costs incurred. However, upon being made aware of this finding, the Agency made applicable credits to the respective Federal programs.
QUESTIONED COSTS: $47,279
Refer to significant deficiency finding 2023-002 for additional context for these questioned costs.
AUDITEE RESPONSE: Refer to the Agency’s Corrective Action Plan.