WILLOWOOD DEVELOPMENTA CENTER, INC.Non-Profit

Condition: Certain ineligible payroll costs were claimed for reimbursement under the Child Care Development Block Grant. Criteria: Allowable costs for the childcare program are provided by the Department of Education. Items not included on their list are deemed unallowable. Cause: One employee who worked in the childcare department also worked in the adult care facilities during COVID-19 closures. The employer?s payroll costs related to adult care, in the amount $2,363, were incorrectly claimed for reimbursement under the Childcare Strong grant. Effect: Childcare Strong expenses of $2,363 were claimed and were determined to be ineligible payroll costs. Upon discovery of the error and further inquiry, substantially more eligible costs were incurred and not claimed. This offset the unallowed costs claimed. Recommendation: The Center should strengthen procedures in place to ensure that allowable costs are coded correctly and reported correctly to the Federal Agency. The Center should review expenses coded to each grant to verify allowability. A quarterly review should be performed to ensure expenses are allowable per the condition of the grant. Views of Responsible Officials and Planned Corrective Actions: The Center agrees with the finding and has corrected the expense coding per grant requirements.