Audit 333255

Condition: During our testing of allowable costs and reporting requirement, we noted exceptions in the ability of management to support payroll incurred for the federal program. The Agency submitted reimbursement for costs that could not be supported as relating to the federal program. Criteria: Under Code of Federal Regulations 200.403(g) states that for costs to be allowed under Federal awards, they must be adequately documented and there must be sufficient documentation. Further under the Uniform Guidance, if a cost benefits two or more projects or activities in proportions that cannot be determined because of the interrelationship of the work involve, then the costs may be allocated or transferred to benefited projects on any reasonable documented basis. Cause: Principles and procedures were not appropriately adhered to in certain instances to ensure that supporting documentation was maintained to evidence that costs were allowable and that an appropriate level of review and approval was completed prior to charging costs to a federal program. Effect: An ineffective control system related to charging of costs to federal programs in order to ensure that only hours work relating the program is charged and requested for reimbursement can lead to noncompliance with law and regulations and possible loss of funding for the related program. Questioned Costs: $383 Context: We sampled 40 items and found 2 exceptions resulting in over reimbursement of $383. This is a condition identified per review of the Agency’s compliance with specified requirements using a statistically valid sample. Recommendation: We recommend that the Agency ensure its policies and procedures are followed on a consistent basis.

Condition: During our testing of allowable costs and reporting requirement, we noted exceptions in the ability of management to support payroll incurred for the federal program. The Agency submitted reimbursement for costs that could not be supported as relating to the federal program. Criteria: Under Code of Federal Regulations 200.403(g) states that for costs to be allowed under Federal awards, they must be adequately documented and there must be sufficient documentation. Further under the Uniform Guidance, if a cost benefits two or more projects or activities in proportions that cannot be determined because of the interrelationship of the work involve, then the costs may be allocated or transferred to benefited projects on any reasonable documented basis. Cause: Principles and procedures were not appropriately adhered to in certain instances to ensure that supporting documentation was maintained to evidence that costs were allowable and that an appropriate level of review and approval was completed prior to charging costs to a federal program. Effect: An ineffective control system related to charging of costs to federal programs in order to ensure that only hours work relating the program is charged and requested for reimbursement can lead to noncompliance with law and regulations and possible loss of funding for the related program. Questioned Costs: $383 Context: We sampled 40 items and found 2 exceptions resulting in over reimbursement of $383. This is a condition identified per review of the Agency’s compliance with specified requirements using a statistically valid sample. Recommendation: We recommend that the Agency ensure its policies and procedures are followed on a consistent basis.