I Know I CanNon-Profit

Finding 2021-001: Identification of the federal program: Department of Housing and Urban Development CFDA # 14.218 Pass-through entity: City of Columbus Pass-through entity identifying number: unknown Program name: COVID-19 - Community Development Block Grants/Entitlement Grants Criteria or specific requirement: Compliance requirement for allowable costs/cost principles. Per the grant agreement IKIC signed with the City of Columbus, equipment is not an allowable cost. Per the agreement, equipment includes items such as the purchase of computers, fax machine, copier, file cabinets, and telephones. Condition: We identified purchases for unallowed equipment items. Purchases were for cell phones and chrome books. Cause: IKIC did not comply with the City of Columbus? Cost Principle Guidelines as included in the agreement as Exhibit B. Effect or potential effect: There may be additional unallowable costs paid for with federal funds. Questioned costs: Total questioned costs were $6,300. Context: Two questioned costs were identified out of a sample of 40 cost selections. IKIC reimbursed one subrecipient for three cell phones at $600 each for a total of $1,800. IKIC reimbursed a different subrecipient for 20 chrome books totaling $4,500. The two questioned costs were reported as Education Program Costs. The sample of 40 cost selections included 18 Education Program Costs totaling $17,297. Identification as a repeat finding: This is not a repeat finding. Recommendation: Read and follow grant agreements as they are written. Views of responsible officials: IKIC agrees with the finding and will implement a corrective action plan no later than June 30, 2022, to include a 3-point approval of sub-recipient reimbursements invoices before reimbursements are paid out. The Financial Controller, Director of Finance & Operations and the Executive Director shall sign off on all invoices before payment is made.