Finding Text
AL 81.141 High school Equivalency Program, Better Together Central Oregon, Award ID: S141A190019,
Award Year: July 1, 2022 – June 30, 2023, Compliance Requirement: B –Cost Principles.
Criteria: Except where otherwise authorized by statute, costs must be incurred in the approved budget
period in order to be allowable under Federal awards. Federal agencies may approve waivers to charge
prior period costs using carry over funding.
Condition: The district charged prior period wages and associated payroll costs to the program. The
District did not apply for or receive a waiver from the federal agency.
Cause: The District did not request a waiver from the federal agency approving the prior year costs prior
to charging the program for the costs.
Effect: Wages allocated to the program were not in the current approved budget period.
Questioned cost: Wages, including associated payroll costs, totaled $35,844. The amount was calculated
based on the total amount charged to the program which was in excess of the employee’s wage allocation
to the program for the year ended June 30, 2023.
Context: The error was isolated to one employees’ wage and associated payroll cost allocation.
Recommendation: We recommend the District implement formal written policies for ensuring that all
charges to federal programs be limited to those incurred in the current budget period. If management
identifies a need to use carry over funds by charging prior year allowable expenses, permission should be
obtained from the federal granting agency prior to such charge.
Views of responsible officials: The District agrees with this finding and has requested a waiver from the
granting agency. Processes will be reviewed, and any necessary changes will be implemented to ensure all
wages are correctly allocated within the budget year