Finding Text
Criteria: In accordance with 2 CFR 200 Subpart E 200.403(b), costs allowed under Federal awards must conform to any limitation or exclusions set forth in the Federal award as to types or amount of cost items. The grant application from KDHE specifically states that all transportation equipment must be leased or rented and no capital purchases are allowed. Condition: Included on the District's expense reports submitted to the Kansas Department of Health and Environment for grant reimbursement was a yearly lease payment for two vehicles to be used for grant purposes. However, the District actually purchased both of these vehicles in full prior to reimbursement from the State of Kansas. A portion of the vehicle purchase was charged to the grant and reimbursed for the 2021-2022 year, with the remaining cost to be submitted and reimbursed in future years, and represented as annual lease payments. Cause: The Superintendent was solely responsible for purchasing these vehicles and instructed the Business Manager to report them as leases on the expense reports submitted to KDHE. The Board did not approve the purchase of these vehicles. Effect: Grant reimbursements were received by the District for unallowable costs. Known Questioned Cost: $18,409. This was the amount reported to the State as the first year lease payment and for which the District received reimbursement for the June 30, 2022 fiscal year. Future reimbursements planned by the District are $16,649 each for the June 30, 2023 and June 30, 2024 fiscal years. Recommendation: The District should fully follow grant requirements to ensure only allowable costs are charged to the grant.