Finding Text
2022-005 U.S. Department of Justice Federal Financial Assistance Listing #16.575 Victims of Crime Act (VOCA) Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Criteria - The Organization allocates various expenditures to several grants, generally using a predetermined percentage split. However, the Organization does have some ability to change the allocation given specific facts and circumstances. Condition - During the course of our engagement, we noted instances where the allocation did not follow the predetermined percentage split, but the allocation methodology and the reason for the allocation not following the predetermine percentage split was not documented. Cause - The grant does allow for changes to the allocation of certain expenditures. However, management was not documenting the reasons for the different allocation methods being used if the predetermine percentage split was not being followed. Effect - Without proper documentation, it is difficult to determine that a reasonable allocation of expenditures occurred. This could result in the granting agencies questioning the allocations and management may not be able to reproduce the methodology or explain the allocation methodology being used. Questioned Costs - None reported Context/Sampling - A sample of 60 expenditures out of over 1,100 expenditures were selected for testing. Ten allocations did not follow the predetermined percentage split and had limited documentation as to the allocation methodology being used. Repeat Finding from Prior Year ? Yes, 2021-005 Recommendation - We recommend that the Organization document the allocation methodology being used for expenditures that relate to more than one grant, especially in cases where the predetermined allocation percentage is not being used. Views of Responsible Officials - Management agrees with the finding.