Finding Text
2022 ? 001 INSURANCE COVERAGE - ALLOWABLE COSTS PRINCIPLES Criteria: 2 CFR ? 200.447 explains that costs which should have been covered by permissible insurance are unallowable. Condition: During our testing of the TANF program we found the District incurred a cost in the amount of $7,905 for hail damage that would have been covered by insurance if the damage had been reported to the insurance company in a timely manner. Cause: The District did not have a process in place to inspect vehicles on a regular basis nor were they aware that these costs were not allowable under the grant. Effect: Reimbursement for an unallowable cost under the grant was received. Questioned Cost: Less than $25,000, actual known cost of $7,905. Recommendation: We recommend that management develop a process to inspect vehicles on a regular basis. Furthermore, management should continue striving to more clearly understand federal cost principles.