Seniors Council received grants of approximately $2 million from the Senior Companion Program (SCP) and the Foster Grandparents Program (FGP) between July 2013 and June 2015.
CNCS-OIG audited and questioned $45,546 or approximately 2.3 percent of the $2 million in Federal costs charged. The questioned costs resulted from the grantee not performing required background checks for its volunteers prior to beginning service and overstating its claimed expenditures by more than $10,000. Seniors Council also commingled funds for multiple grants and grant years, improperly drew down and misapplied Federal funds, and overstated grant expenditures on Federal Financial Reports (FFRs). Seniors Council had various compliance issues, including lack of budget-to-actual comparisons, an improper cost allocation methodology, unmet minimum volunteer service hours, and undocumented volunteers’ letter of agreements.
The initial financial management findings required immediate attention; therefore, CNCS-OIG issued a Management Alert to CNCS in July 2016. CNCS promptly adopted the recommendation to place a manual hold on further drawdowns until Seniors Council completed multiple corrective actions. Seniors Council concurred with most of the compliance findings. The Corporation will resolve the report’s findings and recommendations.