Finding 963869 (2023-008)

Condition: Organization does not have personnel available with qualifications and training to properly charge the CSBG grant for allowable expenditures. Same finding as 2023-004. Criteria: One of the criteria established under the Uniform Guidance for the Community Services Block Grant is for the Organization to establish adequate controls to ensure the Allowable Costs requirements for the Uniform Guidance are followed. Cause: Accounting personnel did not have sufficient understanding and training to properly request reimbursements from the grantor. Effects: As a result, the wrong percentage was used to calculate certain employee salaries charged to the CSBG grant, resulting in the Organization improperly reporting grant expenses and receiving more grant funding than was allowable under the grant. These overcharged amounts, totaling $13,637, were owed back to the grantor as of year-end. Recommendation: The auditor recommends that additional sufficient understanding and training be obtained by accounting department personnel so they can properly request reimbursements from grantors. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and is working to establish a clear understanding of the grant reimbursement process to ensure the proper amounts are charged to each grant.