Finding Text
Finding 2022-002 Significant deficiency in internal controls over compliance and instances of noncompliance related to allowable costs/cost principle compliance requirements. Federal Agency: U.S. Department of Education Program Title: Program of Protection and Advocacy of Individuals Rights Assistance Listing Number: 84.240A Awards Number: H240A220048-22A & 22B Award Period: 10/01/2021 - 9/30/2022 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Subpart E require expenditures allocated to federal awards be supported by a system of internal controls which provides reasonable assurance that charges are accurate, allowable, properly allocated, and supported by adequate documentation. Condition/Context For the year ended September 30, 2022, in a sample of 40 transactions, there were three instances of costs being charged to the award that were not consistent with DRW?s policies and procedures, or consistent with other federal and non-federal awards. The three charges were erroneously charged to the award due to a coding error. This was not a statistical sample. Effect/Potential Effect DRW did not fully comply with the allowable cost principles as specified in Federal Regulations. As a result, there may be charges to the award that are not allowable. Questioned Costs Award H240A220048-22A & 22B: $318.70 Cause DRW?s internal controls related to allowable cost allocation was not sufficient to prevent or detect errors in compliance with the standards and to ensure consistent treatment with policies and procedures. Repeat Finding Not applicable Recommendation We recommend that DRW implement internal controls to ensure that all costs charged to the federal awards are allowable under Federal Regulations and follows DRW?s policies and procedures for consistent treatment. Views of Responsible Officials Management agrees with the finding and has provided the corrective action plan following the Single Audit Report.