Audit 382662

Condition Documentation supporting Title III expenditures could not be located for certain transactions selected. Criteria 2 CFR Part 200.400(d) states, " [t]he accounting practices of the recipient and subrecipient must be consistent with these cost principles and support the accumulation of costs as required by these cost principles, including maintaining adequate documentation to support costs charged to the Federal Award." Further, OMB A-133 Compliance Supplement, Compliance requirement B. Allowable Costs/Cost Principles "Basic Guidelines".. require that expenses/expenditures charged to federal programs be adequately documented. Cause Controls for accumulating and maintaining supporting documentation for Federal award expenditure were not followed. Effect Costs charged to Title III program may be disallowed. Context A sample of 35 non-payroll expenditures totaling $502,650 was selected for testing from a population of 173 totaling $142,441. Testing found that 9 expenditure transactions contained inadequate or no supporting documentation. Our sample was not statistical. Recommendation We recommend the College should review the Title III expenditures charged to the program during fiscal year 2024 to determine the allowability of the costs.