Finding 610657 (2022-002)

Significant Deficiency Repeat Finding
Requirement
AB
Questioned Costs
$1
Year
2022
Accepted
2023-08-10
Audit: 30304
Organization: Alluma, INC (MN)

AI Summary

  • Core Issue: The Organization overpaid for a transaction related to the Emergency Solutions Grant Program, violating federal cost criteria.
  • Impacted Requirements: Costs must be necessary and reasonable as per 2 CFR Part 200, Subpart E Section 200.403.
  • Recommended Follow-Up: Implement procedures to ensure only appropriate costs are charged to the program; the Organization agrees and will act immediately.

Finding Text

2022-002: Significant Deficiency Emergency Solutions Grant Program ? 14.231 ? Allowable Costs / Activities Criteria The ?Basic Guidelines? section of 2 CFR Part 200, Subpart E Section 200.403, requires charges to federal awards to be necessary and reasonable for the performance of the federal award and be allocable thereto under these principles. Condition The Organization paid more than the invoice amount for one transaction. Cause The Organization did not have sufficient procedures in place to ensure that only necessary and reasonable costs were charged to this program. Effect The Organization charged costs to this federal program that were not necessary and reasonable for this federal program. Questioned Costs $4,532 Context A sample of 5 transactions were selected for testing this federal program to determine if the finding issued in the prior year has been resolved. For one transaction tested, the amount paid exceeded the invoice amount due to oversight. Repeat Finding Yes Recommendation The Organization should implement procedures to ensure that only necessary, reasonable costs and incurred costs are charged to the program. Views of Responsible Officials and Planned Corrective Actions The Organization agrees with the recommendation and will implement immediately.

Categories

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 34215 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $268,330
21.027 Coronavirus State and Local Fiscal Recovery Funds $112,530
93.150 Projects for Assistance in Transition From Homelessness (path) $83,260
14.231 Emergency Solutions Grant Program $41,773
93.958 Block Grants for Community Mental Health Services $40,746