Why is the commingling of grant funds not allowable? What internal controls are not in place for the WFM program?

The OIG recommended that FS:
Recover from the Fire Safe Council the $2.7 million in Recovery Act grant funds that were unsupported.
Withhold from the Fire Safe Council any future fund reimbursements until the internal controls and grant administration policies and procedures to properly account for all grant funds in accordance with OMB and grant requirements.
Obtain documentations from the Fire Safe Council Why is the commingling of grant funds not allowable?
What internal controls are not in place for the WFM program?showing that the grant funds were adequately accounted for and used for their intended purpose; and,
In those instances where FS determine the charges to the remaining grant were not adequately supported, disallow the costs and recover any reimbursements already made to the Fire Safe Council.

Our focus in this course has been on foundation grants but grant management requirements of the federal government will play a role in your management experience. This case study is a true event taken from the Office of Inspector General public audit reports. Even the best grant manager will make mistakes that have to be addressed during the annual audit. When the Inspector General conducts an audit, it means that something has gone wrong beyond the average management mistake. As Christians, we are called to be good stewards of the resources we are given. In a 2-page paper address the questions below. Based on what you have learned in this course, how could this situation have been avoided?

Questions:

Why is the commingling of grant funds not allowable?
What internal controls are not in place for the WFM program?
How could the Council have prevented paying for costs that were unauthorized?
How could this situation have been avoided?

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