Grant Writing Audit Evaluation Exercise

Abstract

The Single Audit act of 1996 states that grant recipients may be subjected to a financial audit once yearly. An audit aims to ensure compliance with governmental guidelines and evaluate financial documentation, including expenses paid for with federal award dollars (Grant Writing,2019). This paper evaluates the audit of the Office of Justice Programs Correctional Systems and Correctional Alternatives on Tribal Lands Grant awarded to the Eight Northern Indian Pueblos Council (ENIPC) Ohkay, Owingeh, New Mexico. The evaluation will describe three items ENIPC did correctly and focus on three items ENIPC did incorrectly.

Grant Proposal Audit Evaluation

In September 2009, the Eight Norther Indian Pueblos Council (ENIPC) was awarded $5,636,317 in grant funds with the objective of this grant being to build an alternative substance abuse treatment facility for juveniles in Taos, NM. The U.S. Department of Justice (DOJ) Office of the Inspector General (OIG) completed an audit of funds awarded by the Office of Justice Programs (OJP), Bureau of Justice Assistance (BJA) under the Correctional Systems and Correctional Alternatives on Tribal Lands (CSCATL) Program (Office of Inspector General, 2015).

Capital grant funding via CSCATL involved endeavors towards development, erecting, and modernizing tribal justice facilities regarding confinement and reintegration of adolescents and adults bound to tribal lands, or even investigating community-based alternatives. The ENIPC applied for funding and followed procedures and grant regulations.

 

What the Grantee Did Correctly

 There were three important objectives that the ENIPC performed correctly. During an initial review, OJP concluded that the grantee, ENIPC, effectively protected grant funds, expenses were sufficiently maintained by documentation and were for the aims that supported grant objectives, and lastly, the ENIPC utilized personnel and fringe benefit budgets, and land appraisal, to satisfy the 10% match requirement (Office of Inspector General, 2015).

 

What the Grantee Did Incorrectly

However, after the November 30^th project end date, auditors found discrepancies regarding grant requirements:

1.      ENIPC did not conform with the use of funds and grant matching with unsupported costs to the grant match totaling $626,257. Auditors determined that there was $ $20, 659 in unallowable expenses for items procured after the grant ending date and unbudgeted secondary expenses charged to the grant.

2.      Audit discovery established seven unallowable transactions in the amount of $10,443 after the grant date and it is suggested that these funds be remedied and are as follows:

·         $6,469 for 13 computers

·         $1,825 for 12 printers

·         $2,084 for Microsoft Office licenses

·         $65 for window blinds

3.      $540,000 land valuation not adequately supported Was not able to account for $69,572 in personnel costs. Fringe benefits totaling $16, 685 were not adequately supported.

Audit Recommendations

According to grant requirements the grantee should have introduced a GAN for a budget amendment that alters funds among budget types if the projected growing change is greater than 10% of the total award amount. The audit asked the ENIPC to remedy $10,215 in unallowable indirect costs. The grant approved cost rate is 19.8% and the approved cost rate for recipient is 24%. After an audit was conducted, the ENIPC answered but still did not fulfill the grant requirements and therefore, supported documentation is still lacking.

Conclusion

The grant audit involves checking that a grant report agrees with the underlying financial records and transactions for the period covered by the grant. It is crucial for an organization to comply with all grant regulations and ensure that proper documentation and records are kept in accordance to the terms and conditions of the grant, much like any contract. This evaluation demonstrates the significance of good record keeping and accounting for all aspects of grant funds.

References

 Grant Writing. 2019. Understanding the reporting and oversight process. https://www.grants.gov/learn-grants/grant-reporting.html.

Office of Inspector General. 2015. Audit of the office of justice programs correctional systems and correctional alternatives on tribal lands program grant awarded to the Eight Northern Indian Pueblos Council Ohkay Owingeh, New Mexico. U.S. Department of Justice. Retrieved from https://oig.justice.gov/reports/2015/g6016001.pdf.