Finding Text
Finding # 2023-001:
Type: Material weakness over allowable costs
Assistance Listing Number:
84.044A TRIO Programs Cluster: TRIO – Talent Search
Department of Education
Requirement:
Only allowable costs may be charged to the contract for reimbursement.
Condition/Context:
One out of six invoices charged to the contract was an unallowable expense (scholarships).
Cause:
Management review of invoices did not identify the unallowable expense.
Effect:
Although the contract was initially overcharged, management was able to reclassify other allowable expenses that were not previously charged.
Questioned Costs:
None.
Recommendation:
Expenses charged to contract should be reviewed thoroughly and be in compliance with contract agreement. Management should have understanding of what costs are considered allowable and unallowable.
Management’s Response:
The Executive Director, Business Manager and College+ Program Manager will thoroughly review the monthly Talent Search billing before completing a drawdown to ensure that all expenses billed are allowable costs.