Finding Text
Criteria: An entity should have adequate controls in place to ensure that costs included in federal grant reimbursement
requests are allowable under the terms of the award.
Condition and Context: During our review of allowable costs for the year ended June 30, 2023, we noted certain capital
expenditures that were not approved in writing by the federal awarding agency or the pass-through entity as required by the cost principles outlined in 2 CFR 200.439.
Questioned Costs: $26,566
Cause: Management oversight
Effect: The Organization may receive reimbursements through federal programs for which it is not entitled.
Repeat Finding: No
Recommendation: Reinforce controls to ensure all project invoices including capital expenditures are reviewed and that only eligible costs are reported under the federal award, or that prior authorization by the federal awarding agency or
pass-through entity is obtained when required.
Views of Management: Management agrees with the finding and is implementing procedures that are further discussed in
the corrective action plan. See Corrective Action Plan.