Finding Text
Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards states that all direct charges to federal awards are for allowable costs. Significant Deficiency in Internal Control over Compliance - During our testing over expenditures charged to the Title V - Engage, Promote, Connect program, we noted an instance of an expenditure charged to the program that was unallowable. Questioned Costs-none reported. A nonstatistical sample of 29 transactions charged to the Title V - Engage, Promote, Connect program were selected for testing, which accounted for $365,675 out of $779,546 total expenditures recognized by the District. The District charged an unallowable cost against the program's funding. The District's existing control procedures over reviewing expenditures charged to the program was not sufficiently designed to catch this instance of noncompliance. The District should implement additional processes to review expenditures charged to grant programs for allowability by both the individuals charged with management of the program and the District's Fiscal Services Department.