Finding Text
Federal Program Information Funding Agency: U.S. Department of Treasury Federal ALN: 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Pass Through Agency: Tennessee Arts Commission Criteria The Uniform Guidance contains cost principles which establish guidelines for allowable charges to federal grants. According to section 2 CFR 200.425, only audit services required by, and performed in accordance with, the Single Audit Act are allowed to be charged to federal grants. Condition Out of a sample of 15 charges to the grant that were tested, 1 of the charges was unallowed. The charge was determined to be unallowed as it was for the 2021 audit, which was not required by the Single Audit Act. This resulted in questioned costs totaling $23,768. Cause FAM had not received federal funding previously and therefore did not have a clear understanding of the cost principles contained in the Uniform Guidance. Effect Improper charges, in addition to those identified above, could be remitted to grantors for reimbursement. Auditor's Recommendation FAM should ensure that charges to federal grants are allowable in accordance with cost principles contained in Uniform Guidance. Additional training should be obtained to gain a further understanding of these requirements. Management Response Management agrees with the auditor?s recommendation. Because the grant period is still open, we will subtract the 2021 audit cost of $23,768 from the final period report and replace it with an allowed cost. This will enable us to close out the grant with only allowable costs.