Audit 407064

Criteria: The Program requires that costs charged to the Federal award shall be allowable and supportable in accordance with 2 CFR 200.403. Adequate source documentation must be retained to support reimbursed costs, Condition: Support for expenditures and evidence of timely and proper review was not properly retained for all federal expenditures. Context: Supporting documentation for six of eighteen expenditures tested was not retained. No evidence was retained that itemized Instacart invoices were properly reviewed by management to ensure that costs were allowable under federal grant guidelines. Effect: The lack of retained invoices limits the ability to verify that reimbursed expenses were allowable, properly supported, and in compliance with federal requirements. This condition increases the risk of questioned costs, noncompliance with federal requirements, and potential repayment of unsupported expenditures. Questioned Costs: None. Cause: The condition occurred due to inadequate procedures for ensuring that invoices and supporting documentation were retained and reviewed by the organization prior to reimbursement. Specifically, reliance on staff to maintain original receipts without obtaining and retaining copies resulted in incomplete documentation being available for audit purposes. Recommendation: Management should implement and enforce procedures to ensure that all invoices and supporting documentation are obtained and retained prior to requesting reimbursement. Additionally, management should provide guidance to staff regarding documentation requirements and periodically review reimbursement files to confirm compliance with federal record retention requirements. Identification as a Repeat Finding. This is not a repeat finding. View of Responsible Officials and Corrective Actions: We agree with the auditor's recommendation. Although the referenced invoices were reviewed by the CEO from the vendor for eligibility and reasonableness upon receipt of the automatic e-mailed invoice, there was no procedure to print and retain this documentation in the accounting files for Instacart invoices. Effective June 1, 2026, each month the Director of Finance will compare a checklist of all credit charges to the physical copies prior to filing and obtain any missing invoices as part of the monthly closing process.