Audit 398610

Condition: The Authority did not always maintain the sufficient documents required to support tested transactions. During our testing of transactions, we noted the lack of supporting documentation for four out of forty items tested. The four transactions totaled $91,273, and all occurred before a change in management in April 2024. All transactions after April 2024 were properly recorded and supported. Criteria: CFR 2 Part 200, Subpart E § 200.400(d): The application of federal cost principles should require no significant changes in the internal accounting policies and practices of the non-Federal entity. However, the accounting practices of the non-Federal entity must be consistent with federal cost principles and support the accumulation of costs as required by the principles, and must provide for adequate documentation to support costs charged to the Federal award. Cause: The Authority did not maintain supporting documentation for expenditures. Effect: Possible theft or misuse of federal funds can occur without proper support and approval of expenditures. Recommendation: We recommend that the Authority record all expenditures are properly supported, documented and approved, to ensure compliance with the uniform guidance and generally accepted accounting principles.