Finding Text
Condition: Payroll incurred prior to the effective date of the grant
was charged to the program and requested for reimbursement.
Criteria: Per the terms of the grant agreement, AACA is authorized
to commence services and incur costs as of the beginning effective
date of the grant.
Cause: Payroll was requested for reimbursement based on the date
it was paid, rather than the period it was incurred.
Effect: The grant was billed for a non-allowable activity and a non-
allowable cost, which may be disallowed.
Context: A sample of 20 payroll expenditures charged to the grant
totaling $166,000 were selected from a population totaling $175,472.
The test found 1 expenditure that was not in compliance resulting in
questioned costs of $8,300. Our sample was a statistically valid sample.
Recommendation: Closer attention should be paid to the incurred date
versus the paid date to ensure only activities and costs incurred in the
grant period are charged to the program and requested for reimbursement.
Views of Responsible Officials and Planned Corrective Actions: AACA
agrees with the finding and the recommendation will be implemented.