Finding Text
2023-003 Period of Performance for U.S. DHHS 94.432 ACL Centers for Independent Living
#2001MEILC3-00 (Material Weakness in Internal Controls over Compliance and Noncompliance)
Criteria: Management is responsible for the design and implementation of internal controls over
compliance with period of performance to prevent, or detect and correct costs charged to the
incorrect accounting period.
Condition and Context: Audit procedures noted several expenses charged to the federal award
program that had not been expended or obligated by September 30, 2022, the end of the grant,
and liquidated within the 120-day limit if obligated by September 30, 2022.
Cause: There is a lack of understanding period of performance rules and regulations.
Effect: Total expenditures charged to the federal award program were inaccurate.
Questioned Costs: Known questioned costs related to our testing totaled $131,286. $115,821 in
known questioned costs were already identified as noted above.
Recommendation: Procedures should be implemented to better monitor grant expenditures and
timelines and consider adding a review every month of expenditures charged to federal grants,
so that expenditures are recorded in the appropriate period. In addition, Alpha One should
contact the Centers for Independent Living regarding this issue and return these funds.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the
findings and has already contacted the Centers for Independent Living to inform them of the
issue, and are working through whether return of the funds is necessary.