The Center for Rural Development

Date Issued

Wednesday, May 29, 2024

Submitting OIG

Appalachian Regional Commission OIG

Other Participating OIGs

Appalachian Regional Commission OIG

Agencies Reviewed/Investigated

Appalachian Regional Commission

Report Number

OIGRpt24-25

Report Description

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements.

Report Type

Audit

Location

Somerset, KY
United States

Number of Recommendations

Questioned Costs

$251,101

Funds for Better Use

Open Recommendations

This report has 6 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
24-25-01	No	$4,151	$0
The Grantee work with ARC to resolve the questioned costs totaling $4,151 under Grant No. KY-18984 (Phase 3) ARC funded Contractual cost.
24-25-02	No	$0	$0
The Grantee implement process to ensure indirect costs are calculated in accordance with the Uniform Guidance and the Nonprofit Rate Agreement (NICRA).
24-25-03	No	$36,539	$0
The Grantee work with ARC to resolve the questioned costs totaling $8,960 for ARC funded indirect costs and $27,579 for non-ARC unrecovered indirect costs.
24-25-04	No	$0	$0
The Grantee revise its policies and procedures to ensure that costs claimed are adequately supported by source documents in accordance with the regulations.
24-25-05	No	$181,905	$0
The Grantee work with ARC to resolve the questioned costs totaling $181,905 for non-ARC matching contractual costs under ARC Grant No. KY-18732 (Phase 2).
24-25-06	No	$28,506	$0
The Grantee work with ARC to resolve the total questioned costs in the amount of $28,506 for unrecovered indirect costs claimed as non-ARC match funds.