Finding 6228 (2022-003)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-12-21
Audit: 8184
Organization: Ifoster, Inc. (CA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: iFoster, Inc. included donated services and salaries in grant reimbursement requests, violating federal regulations.
  • Impacted Requirements: Compliance with Title 2 U.S. Code of Federal Regulations Part 200, which prohibits charging donated services as direct costs to federal awards.
  • Recommended Follow-Up: Strengthen internal controls to ensure donated services are excluded from reimbursement requests.

Finding Text

U.S. Department of Labor, State of Washington – Service Washington, State of California – California Volunteers, State of Kentucky – KY Cabinet of Health and & Family Services, 94.006 AmeriCorps State and National Allowable Costs/Costs Principles Material Weakness in Internal Control Over Compliance Grant Award Number: GCU8PW8ZDXN8, G6Y2ZAMJJRA9, and LECJQDCLHVE5 Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Contributions and donations (Uniform Guidance) provides that amounts for the value of services and property donated may not be charged to the Federal award as direct costs. Condition: Amounts received for cell services and for salaries were donated to iFoster, Inc. were included in amounts to be reimbursed by the grant. Cause: iFoster, Inc. did not have adequate internal controls to ensure that the donated services were not included in amounts to be reimbursed by the grant. Effect: iFoster, Inc. may have grant funds received which were not allowable. Questioned Costs: None noted. Context/sampling: A nonstatistical sample of 8 deviations were noted out of 93 selected for testing, representing $3,934 of $162,508 selected for testing, with a total of 125 deviations noted in the population totaling to an amount of $20,729 of the total population of $422,538. Report Finding from Prior Year(s): No. Recommendation: We recommend iFoster, Inc. enhance the internal controls over donated services and property and requesting amounts for reimbursement. Views of Responsible Officials: iFoster, Inc. agrees with this finding; see corrective action plan.

Corrective Action Plan

Finding 2022-003 Federal Agency Name: U.S. Department of Labor Program Name: AmeriCorps State and National CFDA #: 94.006 Finding Summary: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Contributions and donations (Uniform Guidance) provides that amounts for the value of services and property donated may not be charged to the Federal award as direct costs. Amounts received for cell services and for salaries were donated to iFoster, Inc. were included in amounts to be reimbursed by the grant. Responsible Individuals: Reid Cox Corrective Action Plan: Acknowledged. This practice was discontinued subsequent to FY’22 and so is not an ongoing issue. Anticipated Completion Date: Ongoing

Categories

Allowable Costs / Cost Principles Cash Management Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 6229 2022-004
    Material Weakness
  • 6230 2022-003
    Material Weakness
  • 6231 2022-004
    Material Weakness
  • 6232 2022-003
    Material Weakness
  • 6233 2022-004
    Material Weakness
  • 582670 2022-003
    Material Weakness
  • 582671 2022-004
    Material Weakness
  • 582672 2022-003
    Material Weakness
  • 582673 2022-004
    Material Weakness
  • 582674 2022-003
    Material Weakness
  • 582675 2022-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
94.006 Americorps $65,380
10.551 Supplemental Nutrition Assistance Program $11,626