The U.S. Department of Justice Office of the Inspector General (OIG), Audit Division, has completed an audit of the Office of Community Oriented Policing Services (COPS), Safe Schools Initiative (SSI) grants, under grant numbers 2004-CKWX-0324, 2005-CKWX-0418, and 2006-CKWX-0553. The Daniel Webster Council (DWC) - Boy Scouts of America received a combined total of $1,234,868 from the grants to build the character of at-risk youth in New Hampshire through in-school counseling and outdoor activities. The overall objectives of the grants were to increase student success and to instill a sense of personal responsibility in students during the school year.
The objective of our 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 evaluated the DWC’s program performance in meeting grant objectives and overall accomplishments.
We determined that the DWC was in material non-compliance with the grant requirements we tested. Specifically, we reviewed the DWC’s compliance with seven essential grant conditions, and found material weaknesses in the grant expenditures we tested.
For the 2004, 2005, and 2006 grants collectively, we found that the DWC was unable to support $882,737 in expenditures, including personnel and fringe benefits, and other miscellaneous grant funded charges. Additionally, we found a combined total of $101,189 in unallowable expenditures charged to the grants.
In addition to the questioned costs, we determined that the DWC did not account for grant transactions separate from non-grant transactions and submitted the majority of its Financial Status Reports late. As a result, our audit includes two management improvement findings related to the comingling of funds and untimely financial status reporting.
These items are discussed in detail in the Findings and Recommendations section of this report. Our audit objectives, scope, and methodology appear in Appendix I. Our summary of the dollar-related findings cited as questioned costs is included as Appendix II of this report.
We discussed the results of our audit with DWC officials and have included their comments in the report, as applicable. Additionally, we requested a response to our draft report from the DWC and COPS, and their responses are appended to this audit report in Appendices III and IV respectively. Finally, our analysis of those responses and the actions necessary to close the recommendations is included as Appendix V of this report.