Case Study One

Questions:

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

See attached case study

SAMPLE SOLUTION

Case Study One
There is a reason why commingling grant funds are not allowed. According to Grants.gov. (n.d.), commingling of funds comprises the combination or mixing of funds from different sources, for example, grant/trust funds and corporate funds, thus breaching the fiduciary duty. In this case, commingled costs cannot be charged to Federal grants because it either reduces or eliminates the ability of a grant recipient to identify the specific portion of commingled costs that relate with authorized grant works, and those that do not. This would be the case with the Council since it commingled $2.7 million of the total FS Recovery Act grant funds it received totaling…