Finding Text
Federal Agency: United States Department of Health and Human Services
CFDA Number(s): 93.575 Program Name(s): Child Care and Development Block Grant
Criteria or specific requirement: The Code of Federal Regulations 200.423 states: Costs of alcoholic beverages are unallowable.
Context and Condition: During our testing of disbursements, we noted 1 of the 40 disbursements sampled pertained to monthly credit card disbursements with transactions including the cost of alcoholic beverages allocated to the Federal programs.
Questioned Costs: None noted
Cause and Effect: Program personnel did not adhere to the Code of Federal Regulations for ensuring alcoholic beverages are not charged to a federal program. Failure to follow federal regulations is
noncompliance and may result in a loss of federal funding.
Recommendation: We recommend the Organization's management review the requirements for compliance with Federal regulations. In addition, we recommend the Organization's management implement policies and procedures to ensure compliance with Federal regulations.