Audit 26764

2022-002 Allowable Costs Principles for Disbursements ? Significant Deficiency Criteria: The Uniform Guidance sets forth certain Cost Principles outlined at 2 CFR Part 200, Subpart E for federal award recipients to implement the necessary internal controls and effective monitoring to ensure compliance. These principles require that the recipient provide for adequate documentation to support costs charged to the Federal award. Condition: Supporting documentation was missing for 1 out of 37 disbursements selected for allowable costs testing during the audit. Without adequate transportation logs, we were unable to determine if the reimbursed trips occurred. However, the projection of the error was less than the $25,000 reportable limit of questioned costs. Cause: The Organization?s controls did not provide for supporting documentation to be adequately retained. Recommendation: We recommend that internal control procedures on recordkeeping and filing should be clearly stated as part of the Organization policy. Views of responsible officials: Organization management concurs with the finding. The Organization will implement additional internal controls for processing subcontractor documentation and addressing discrepancies to remain in compliance with Federal and State guidelines. The Organization will also begin a search to hire an experienced staff person to implement these internal controls.

2022-002 Allowable Costs Principles for Disbursements ? Significant Deficiency Criteria: The Uniform Guidance sets forth certain Cost Principles outlined at 2 CFR Part 200, Subpart E for federal award recipients to implement the necessary internal controls and effective monitoring to ensure compliance. These principles require that the recipient provide for adequate documentation to support costs charged to the Federal award. Condition: Supporting documentation was missing for 1 out of 37 disbursements selected for allowable costs testing during the audit. Without adequate transportation logs, we were unable to determine if the reimbursed trips occurred. However, the projection of the error was less than the $25,000 reportable limit of questioned costs. Cause: The Organization?s controls did not provide for supporting documentation to be adequately retained. Recommendation: We recommend that internal control procedures on recordkeeping and filing should be clearly stated as part of the Organization policy. Views of responsible officials: Organization management concurs with the finding. The Organization will implement additional internal controls for processing subcontractor documentation and addressing discrepancies to remain in compliance with Federal and State guidelines. The Organization will also begin a search to hire an experienced staff person to implement these internal controls.