Hawaii Claimed Unallowable Community Services Block Grant Costs for Hawaii County Economic Opportunity Council's Expenditures Under the Recovery Act.

摘要

Hawaii County Economic Opportunity Council (Council) is a nonprofit CAA that has served low-income individuals in the county of Hawaii since 1965. The mission of the Council is to alleviate, eliminate, and prevent poverty in Hawaii through various programs. For the period November 5, 2009, through September 30, 2010, the State agency awarded the Council $1,016,063 in CSBG Recovery Act funds (the award). The Council expended $975,368 of the award. The remaining $40,695 was not expended and was returned to the State agency. By accepting grant awards, States agree to comply with Federal regulations governing the administration of the grants, including compliance with various cost principles. Federal law requires that States receiving CSBG funds ensure that cost and accounting standards of the Office of Management and Budget apply to a recipient of the funds. Nonprofit CAAs are subject to 45 CFR part 74. These regulations state that the allowability of costs will be determined in accordance with 2 CFR part 230, Cost Principles for Non-Profit Organizations. To be allowable under an award, costs must be reasonable for the performance of the award and allocable to the award under these principles. Costs are allocable if they are distributed in reasonable proportion to the benefits received. Our objective was to determine whether the CSBG costs that the State agency claimed for the Councils program expenditures were allowable in accordance with applicable Federal requirements.