Finding Text
Criteria or specific requirement: Per ?200.309 Period of Performance, a non-federal entity may charge to the Federal Award only allowable costs incurred during the period of performance. Condition: During our testing, we noted the Loan Fund did not comply with the period of performance requirements. Questioned costs: $4,377 Context: We noted during out testing over allowable costs that 3 of the 45 tested payroll disbursements were for a pay period before the start of the period of performance. Cause: Lack of established controls and procedures over period of performance and allowable costs principals. Effect: Possible noncompliance with federal cost principals or grant requirements. Recommendation: We recommend that the Loan Fund reviews the period of performance for grants when applying expenditures to the grant. Views of responsible officials: There is no disagreement with the audit finding. Management accepts this finding and has made efforts to review and update our policies and procedures to prevent future noncompliance with federal cost principals and period of performance requirements.