Criteria: 2 CFR §200 requires written policies and procedures in various matters such as cash management, personnel compensation, and determination of allowability of costs in accordance with cost principles and terms of the federal awards, not all inclusive. Condition: The Organization is aware of the need for written policies and procedures over accounting, grants management, and financial reporting areas to ensure compliance with federal laws, regulations and grant agreements. However, the Organization did not have written policies and procedures with references to current regulations as required by 2 CFR §200. Cause: The Organization did not update its procedures manual to reflect the current references as required by 2 CFR §200. Effect: Without established polices and continuously updated written procedures required by 2 CFR §200, the Organization has insufficient internal controls over compliance with federal laws, regulations and grant agreements related to the federal awards it receives and expends.
Criteria: According to 2 CFR §200.302, the financial management system of each non-Federal entity must provide for records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Internal controls over financial reporting and compliance involve procedures and mechanisms designed to ensure the accuracy, reliability and integrity of an Organization’s financial reporting and its adherence to laws and regulations. Condition: During our testing of the audit of activities allowed or unallowed and allowable costs/cost principles requirements, we noted two instances of a lack of supporting documentation for gas and mileage reimbursements. Upon further investigation, we noted that all requests and payments for gas and mileage reimbursements lacked the receipts, purpose, and requests for reimbursement. Cause: Program personnel did not adhere to the policies and procedures in maintaining supporting documentation and/or program personnel were not knowledgeable of the Organization’s policies and procedures and the requirements of 2 CFR §200.302. Effect: The Organization failed to maintain the supporting documentation necessary to validate the expense reimbursements and whether the expenditures were in compliance with 2 CFR §200.302.
Criteria: 2 CFR §200 requires written policies and procedures in various matters such as cash management, personnel compensation, and determination of allowability of costs in accordance with cost principles and terms of the federal awards, not all inclusive. Condition: The Organization is aware of the need for written policies and procedures over accounting, grants management, and financial reporting areas to ensure compliance with federal laws, regulations and grant agreements. However, the Organization did not have written policies and procedures with references to current regulations as required by 2 CFR §200. Cause: The Organization did not update its procedures manual to reflect the current references as required by 2 CFR §200. Effect: Without established polices and continuously updated written procedures required by 2 CFR §200, the Organization has insufficient internal controls over compliance with federal laws, regulations and grant agreements related to the federal awards it receives and expends.
Criteria: 2 CFR §200 requires written policies and procedures in various matters such as cash management, personnel compensation, and determination of allowability of costs in accordance with cost principles and terms of the federal awards, not all inclusive. Condition: The Organization is aware of the need for written policies and procedures over accounting, grants management, and financial reporting areas to ensure compliance with federal laws, regulations and grant agreements. However, the Organization did not have written policies and procedures with references to current regulations as required by 2 CFR §200. Cause: The Organization did not update its procedures manual to reflect the current references as required by 2 CFR §200. Effect: Without established polices and continuously updated written procedures required by 2 CFR §200, the Organization has insufficient internal controls over compliance with federal laws, regulations and grant agreements related to the federal awards it receives and expends.
Criteria: According to 2 CFR §200.302, the financial management system of each non-Federal entity must provide for records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. Internal controls over financial reporting and compliance involve procedures and mechanisms designed to ensure the accuracy, reliability and integrity of an Organization’s financial reporting and its adherence to laws and regulations. Condition: During our testing of the audit of activities allowed or unallowed and allowable costs/cost principles requirements, we noted two instances of a lack of supporting documentation for gas and mileage reimbursements. Upon further investigation, we noted that all requests and payments for gas and mileage reimbursements lacked the receipts, purpose, and requests for reimbursement. Cause: Program personnel did not adhere to the policies and procedures in maintaining supporting documentation and/or program personnel were not knowledgeable of the Organization’s policies and procedures and the requirements of 2 CFR §200.302. Effect: The Organization failed to maintain the supporting documentation necessary to validate the expense reimbursements and whether the expenditures were in compliance with 2 CFR §200.302.
Criteria: 2 CFR §200 requires written policies and procedures in various matters such as cash management, personnel compensation, and determination of allowability of costs in accordance with cost principles and terms of the federal awards, not all inclusive. Condition: The Organization is aware of the need for written policies and procedures over accounting, grants management, and financial reporting areas to ensure compliance with federal laws, regulations and grant agreements. However, the Organization did not have written policies and procedures with references to current regulations as required by 2 CFR §200. Cause: The Organization did not update its procedures manual to reflect the current references as required by 2 CFR §200. Effect: Without established polices and continuously updated written procedures required by 2 CFR §200, the Organization has insufficient internal controls over compliance with federal laws, regulations and grant agreements related to the federal awards it receives and expends.