Audit 406332

Criteria: In accordance with the terms of the Organization's federal award agreements, the Organization must maintain supporting documentation for all expenditures using federal awards. This documentation must also show proper review and approval of each expenditure. Condition: During our audit of the major program for the year ended June 30, 2025, we noted that the Organization did not maintain supporting documentation such as approved timesheets for all payroll expenditures incurred under their federal awards. Cause: This was caused by the departure of certain program staff which resulted in the loss of approved timesheets which would have substantiated the allocation of employee labor costs to federal programs. Effect or portential effect: Failure to maintain these timesheets resulted in the inability to properly substantiate all of the federal award expenditures. Questioned Costs: None noted. Identification of repeat finidng: No Recommendation: We recommend the Organization strengthen its internal control over document retention. This could include establishing a policy which requires all supporting documentation to be stored electronically so that it is easily accessible in the event of an employee departure in the future. Views of responsible officials: Management has evaluated the finding and will implement a corrective action plan that strengthens internal controls over record retention.