PDF 5.4MB - Administration for Children and Families

ADMINISTRATIVE EXPENDITURESCommon Finding:Grantee did not have adequate financial policies and procedures toallow the program to determine the amount of administrativeexpenditures.Federal Regulation:45 CFR Part 286.50."No Tribal TANF grantee may expend more than 35 percent of itsTribal Family Assistance Grant (TFAG) for administrative costsduring the first year.""No Tribal TANF grantee may expend more than 30 percent of itsTFAG for administrative costs during the second year.""A Tribal TANF grantee may not expend more than 25 percent ofits TFAG for administrative costs during any subsequent grantperiod."TANF Policy Announcement TANF-ACF-PA-98- 1 dated January7, 1998.Recommendation:The program shall establish a procedure for the monitoring theadministrative expenditures of the program.Basis for the Recommendation:The program will have an internal control procedure that supports theTribal Government's finance department in complying with TribalTANF Program regulations.Action Steps:1. Identify program staff responsible for monitoring programexpenditures.2. Establish a monthly log that details total program expenditures andtotal administrative expenditures.3. Calculate cumulative administrative expenses as a percentage ofcumulative total expenses on a monthly basis.4. Develop a corrective action plan if administrative expenses exceedthe allowable limit for the first,second, or subsequent year.5. Develop a program procedure for monitoring administrativeexpenses.