The U.S. Department of Justice (DOJ) Office of the Inspector General, Audit Division, has completed an audit of the Office of Juvenile Justice and Delinquency Prevention (OJJDP) grant number 2005-JL-FX-0015 and cooperative agreement number 2006-JL-FX-K022,1 awarded to TechMission, Incorporated (TechMission).2 The purpose of these grants was to protect children in at-risk communities from pornography and other dangers online, and to support technology based programs for at-risk youth during after school hours.
The objective of this audit was to determine whether reimbursements claimed for costs under the grants were allowable, supported, and in accordance with applicable laws, regulations, guidelines, and the terms and conditions of the grants. We also assessed TechMission’s program performance in meeting grant objectives and overall accomplishments.
We determined that TechMission did not fully comply with grant requirements in the areas we tested. We found that TechMission did not follow its approved indirect cost agreement and did not use the proper methodology in charging expenditures for indirect costs to the grants. Instead of charging the grants the approved indirect cost rate, TechMission charged expenditures budgeted as indirect costs to the direct cost categories in the approved budgets. We further determined that TechMission did not adhere to the direct cost categories in its approved grant budgets and it reprogrammed grant funds in excess of 10 percent of the total grant award without the required OJP preapproval. TechMission also miscategorized certain costs in the grant budgets it submitted to OJP, which OJP subsequently approved. Finally, we determined that TechMission did not adhere to the special condition requiring it to submit all grant funded products to OJP for review and approval before any public distribution.
These items are discussed in detail in the Findings and Recommendations section of the report. Our audit objectives, scope, and methodology are discussed in Appendix I.
We discussed the results of our audit with officials from TechMission and have included their comments in the report, as applicable. In addition, we provided TechMission and OJP a copy of the draft report and their responses can be found in Appendices II and III respectively. In its response, TechMission agreed with our findings and subsequently provided documentation demonstrating the implementation of policies and procedures that addressed each of the recommendations made in our draft report. Additionally, our analysis of both responses, and review of the documentation provided by TechMission, allowed us to close the recommendations. Our detailed analysis and closure of each recommendation can be found in Appendix IV of this report.
- Because our audit approach treats both grants and cooperative agreements identically, we refer to both funding mechanisms as grants throughout this report.
- We originally intended to audit grant number 2008-JL-FX-0544. However, we determined there had been no programmatic or financial activity related to this grant at the time of our audit. Therefore, we did not include this grant in our audit.