Finding Text
Finding No. 2023‐001: Allowable Costs – Significant deficiency in internal control over compliance and compliance finding. Criteria: Organization is required to comply with allowable cost principles as detailed in 2 CFR 200, Support E. Condition: During allowable costs testing it was noted that 2 out of 22 sampled expenses contained unallowable costs. Cause: The Organization’s programmatic employees were not aware of the details of 2 CFR 200, Subpart E, which resulted in unallowable costs being included on expense reimbursements. Effect: Unallowable costs were charged to the grant. Questioned costs: None Recommendation: The Organization should implement controls over allowable costs that ensures unallowable costs are detected and appropriately omitted from grant reimbursement requests. Management’s Response: See corrective action plan.