Audit 367398

FINDING #2024-004: Compliance Testing Federal Program Affected: DOE Weatherization Assistance for Low-Income Persons ALN #81.042 Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Procurement. Questioned Costs: $14,596 of known questioned costs for procurement and allowable costs and an additional $168 for allowable costs Criteria and Effect: Adequate internal controls are necessary to ensure compliance with federal grant programs. We noted: 1. The Bookkeeper receives invoices, enters transactions into QuickBooks, and makes electronic payments without additional review. 2. Nine out of 29 federal expenditures selected for testing did not have support for grant manager’s approval to indicate expenditure was allowable. 3. A sample of 29 federal nonpayroll expenditures totaling $121,357 was selected for testing out of a population of $373,496 total nonpayroll federal expenditures for the weatherization grant. We noted 6 out of 29 federal expenditures selected for testing did not have supporting documentation for the expenditure resulting in questioned costs of $14,764 for allowable costs. 4. A sample of 29 federal nonpayroll expenditures totaling $121,357 was selected for testing out of a population of $373,496 total nonpayroll federal expenditures for the weatherization grant. We noted 5 out of 29 federal expenditures selected for testing did not have supporting documentation related to proper procurement for the expenditure resulting in questioned costs of $14,596. 5. There was a lack of support documenting for grant manager approving timesheets indicating the expenditure was allowable. 6. Six out of 11 employees tested and charged to the federal grant did not have supporting documentation for their approved pay rate. Repeat Finding from Prior Year: No. Recommendation: We recommend the Organization continue to develop additional oversight and segregation of duties related to internal controls over compliance. Additionally, we recommend the Organization develop processes to ensure the record keeping policy is followed. Response/Corrective Action Plan: See Organization’s Corrective Action Plan