Audit 402998

Finding # 2025-002 Type: Significant deficiency over allowable costs Assisting Listing Number: 11.463 Federal Agency: Department of Commerce Name of Federal Program: Habitat Conservation Requirement: Costs charged to government grants should have supporting documentation and appropriate review and approval of the amounts charged. Condition: The audit identified several instances where the review and approval control did not operate as intended. Context: Four out of twenty-one invoices tested included immaterial unallowable amounts (3) or could not be substantiated (1). In addition, time sheets for three people out of ten were missing approvals. This appeared to be isolated to August. Cause: The controls as designed did not identify costs that should not have been charged and documented approvals for time sheets were not retained. Effect: Unallowable or inaccurate costs could be charged to grants. Questioned Costs: None. Recommendation: There should be a more rigorous review of all amounts charged to contracts, particularly those involving credit card charges. In addition, there should be a documented control to make sure all time sheets are approved before submission.

Finding # 2025-003 Type: Significant deficiency over reporting Assisting Listing Number: 11.463 Federal Agency: Department of Commerce Name of Federal Program: Habitat Conservation Requirement: Reports submitted should have supporting documentation and appropriate review and approval before submission. Condition: Management could not substantiate that reports submitted (SF-425s) were reviewed and approved before submission. Context: Four out of four reports tested did not have documented review and approval. Cause: There is not a control policy in place to document the review and approval for SF-425 submissions. Effect: Reports submitted could be inaccurate. Questioned Costs: None. Recommendation: The Organization should implement a policy to document the review and approval of reports before submission.

Finding # 2025-004 Type: Immaterial noncompliance Assisting Listing Number: 11.463 Federal Agency: Department of Commerce Name of Federal Program: Habitat Conservation Requirement: Costs charged to government grants should be permissible under federal guidelines. Condition: Amounts charged to the grant purchased on a credit card were not allowable or were inaccurate. Context: Four out of twenty-one invoices tested included immaterial unallowable amounts (3) or could not be substantiated (1). Cause: The controls as designed did not identify costs that should not have been charged. Program staff were not aware certain purchases were disallowed. Effect: Immaterial amounts were charged to the grant. Questioned Costs: None. Recommendation: There should be a more rigorous review of all amounts charged to contracts, particularly those involving credit card charges. In addition, program staff should be reminded regarding what are permissible expenses under government grant guidelines.