Finding Text
2023-001 U.S. Department of the Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds for the period July 1, 2022 through June 30, 2023
Criteria: To be considered allowable costs and activities, costs charged to grant funds should be covered under the scope of the grant agreement, and for activities related to such agreement. In addition, under the requirements of fiscal management, grant recipients are required to design and implement internal controls to ensure compliance with grant requirements and their own policies and procedures.
Statement of Condition: The School Department received reimbursement for CSLRF expenditures related to contracted custodial costs not covered by the grant.
Cause: Invoices for cleaning costs were coded 100% to grants funds, and were not identified during review procedures. As a result, reimbursement was requested, and received for costs outside the grant scope.
Effect: Non-compliance with general provisions of the Uniform Guidance may affect grants received by the School Department in the future.
Recommendation: We recommend that management ensure all items charged to federal grants are for costs directly associated with the grant purpose, and allowable under the grant.