Del Oro Caregiver Resource CenterNon-Profit

Finding 2019-001 - Allowable Costs/Cost Principles (Significant Deficiency in Internal Control Over Compliance) Criteria - In accordance with Part 200 of the Uniform Guidance, ?200.405a Allocable costs, a cost is only allocable to a particular Federal award if the services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received. Condition- Expenditures were allocated to the major federal program that were expenditures of a separate grant award. Questioned Costs - $352 of known questioned costs. Context - Two instances were noted of respite services, totaling $352, being improperly allocated and reimbursed by the major program when the participant's expenditures were approved and being allocated to a State grant. Effect - Expenditures not allocable to the major program were reimbursed to the Organization. Cause - The control in place to review the allocation of expenditures to grant awards failed in execution. Recommendation - We recommend management perform a more thorough review of expenditure allocations, including a second review of funding source, prior to claiming the reimbursement to the grant. Management's Response - In November 2018, one client had two vouchers for respite care totaling $352. Although the correct funding source was on the voucher paperwork, it was coded incorrectly when entered into QuickBooks for payment. We are in agreement with the recommendation to perform a more thorough review of expenditure allocations, including a second review of funding source, prior to claiming the reimbursement to the grant and have updated our financial procedures to reflect this practice.