Finding Text
Criteria: Per EL042 Grant Agreement with DEL, the Coalition is subject to specific expenditure targets for the program as follows: o The ELC shall keep costs to the minimum necessary to efficiently and effectively administer the SR Program. No more than five percent of all state, federal, and local matching funds expended by the ELC for the SR Program shall be expended for administrative activities. Condition: During our testing of the allocation of expenditures by cost type for the SR Program, we noted the following exceptions: o Total SR Program funds expended for administrative activities totaled 5.30% exceeding the 5% maximum. Cause: The Coalition experienced high management turnover during the year which resulted in multiple CFOs and accounting staff which lead to excess administrative costs. Effect: The allocation of expenditures was not compliant with the expenditure target defined in the criteria above, therefore DEL has the potential to recover the unallowable expenditures at its discretion. Questioned Costs: The Coalition did not meet the requirement per DEL, and therefore may have questioned costs of approximately $57,000, which was calculated as the total SR Program administrative activities exceeding the 5% maximum. Recommendation: We recommend that management take proactive measures to monitor and ensure that the Coalition will remain in compliance with statutory requirements.