Finding Text
2023 – 005 Allowable Costs
Federal Agency: US Department of Education
Federal Program Name: Special Education - Grants for Infants and Families
Assistance Listing Number: 84.181A
Federal Award Identification Number and Year: H181X210125-21A & H181A210125
Award Period: 7/1/21-09/30/22 & 7/1/22-09/30/23
Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters
Criteria or specific requirement: Part 4 of the Federal Compliance Supplement and the IDEA
Application says, "A state may charge rent, occupancy, or space maintenance costs as a direct cost to
its IDEA Part C grant award, only if it indicates so in the Section IV.B.2, "Restricted Indirect Cost
Rate/Cost Allocation Plan Information," of its IDEA Part C grant application and receives approval from
the US Education Department in its grant award letter (34 CFR section 303.225(c) (3)).
Condition: During our testing of 34 vouchers, 14 were for costs related to space maintenance.
Questioned costs: $2,666.72
Context: We tested 34 vouchers, of which 14 contained exceptions
Cause: Management oversight with regard to requiring explicit approval from the US Education
Department in advance
Effect: Noncompliance with allowable costs
Repeat Finding: No
Recommendation: We recommend the program review the compliance supplement and grant
applications thoroughly to notate instances when federal approval is required in advance.
Views of responsible officials: There is no disagreement with the audit finding.