Finding Text
Section III - Federal Award Findings and Questioned Costs: 2022 -001: Period of performance Type: Significant deficiency in internal control over compliance, immaterial non-compliance Assistance Listing Number, Federal Agency, Program Name, Program Title, Pass-through Grantor, and Pass-through Name and Grant Number: - Assistance listing #20.507, U.S. Department of Transportation, Section 5307 - CRRSA Act FY 2021, MI-2022-010-00 Criteria: The federal award specified that the award could be used for up to 100% of operating expenses for the period from the effective date of this award through September 30, 2023. Where a funding period is specified, a non-federal entity may charge to the award only costs resulting from obligations incurred during the funding period and any pre-award costs authorized by the awarding agency. Condition: During our audit, we noted that expenses were charged to the award prior to the effective date of the award. Cause: The Commission received another similar operating grant from the same pass-through agency at the same time, which allowed expenses to be charged to the award starting on January 20, 2020, which management inadvertently considered as the start date for the grant. Context: $33,494 was requested prior to the effective date of the award. Questioned Costs: $33,494 Effect: Expenses were charged to the award prior to the effective date of the award. Recommendation: A second person should review the grant agreements and requests for funding to make sure the Commission is in compliance with the period of performance and other grant awards.