Finding 585276 (2022-002)

Allowable Costs and Activities Allowed Federal agency: Department of Health and Human Services Federal program title: Family Violence Prevention and Services/State Domestic Violence Coalition Assistance Listing Number: 93.591 Award years: 2021 and 2022 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires compliance with allowable cost and activities allowed provisions. The Alliance should have internal controls to ensure compliance with those provisions are complied with. Condition: Extended off island travel was approved by the Board, however documentation indicating the cost savings to the alliance was not maintained. Questioned costs: None. Context: The fiscal policy indicates that extended of island travel is permissible of justifiable cost savings is documented. Cause: The Board approved the extended travel without documented cost savings analysis that is required per the fiscal policy. Effect: A failure to comply with fiscal policies may result in noncompliance with Uniform Guidance allowable cost and activities allowed provisions. Repeat Finding: No Recommendation: We recommend the Alliance maintain support for the cost savings analysis related to extended travel. Views of Responsible Officials: Management agrees. Processes will be put in place to document cost savings in writing when extended travel is necessary. This cost analysis will be filed along with board approval, so it is easily accessible upon request.