We audited costs claimed by the State of Connecticut’s Department of Economic and Community Development (DECD) on Grant No. P13AF00113 with the National Park Service (NPS) to determine whether (1) they were reasonable, supported, allowable, and allocable and (2) the DECD complied with Federal regulations, State and NPS policies and procedures, and grant agreement terms and conditions. We also reviewed the use of grant funds for site survey work and determined that it was allowable under the governing legislation.
We reviewed $5,002,392 in costs claimed between July 1, 2013, and March 31, 2017, and determined that $1,912 of the costs claimed by the DECD on the grant was unallowable, and that there was an undetermined amount of unallowable administrative costs under Federal regulations, State and NPS policies and procedures, and grant agreement terms and conditions. We also identified $244,978 in unallowable costs, but the DECD provided us with the required approval after we brought these costs to the DECD’s attention. In addition, we identified deficiencies in compliance. Specifically, the DECD:
• Did not track administrative costs
• Paid costs outside the period of performance without obtaining timely approval
• Did not properly segregate Federal funds
• Made an ineligible purchase of $1,912
• Did not identify a computer in use as Federal Government property
• Did not properly document subgrant monitoring
• Did not properly complete the Federal Financial Reports
These deficiencies occurred because the DECD misapplied or misunderstood the Federal regulations, State and NPS policies and procedures, and grant agreement terms and conditions. These deficiencies led to $1,912 in ineligible costs (for a computer charged to the grant but not used) and an undetermined amount of other questioned costs because the DECD did not properly track expenditures.
In this audit report, we made nine recommendations to help the NPS develop policies and procedures to ensure the DECD’s compliance with Federal regulations, State and NPS policies and procedures, and grant agreement terms and conditions.