Finding Text
Finding 2022-002 Significant DeficiencyAssistance Listing: 84.351 C.A.R.E.Condition:Cleveland Play House does not have adequate documentation to support all charges to the federalprogram.Of the 40 payroll charges tested, 26 did not have adequate documentation. In addition, it was notedthat for 2 of the 37 non-payroll charges tested supporting documentation was unable to be located.In addition, management provided an Excel spreadsheet to support the charges that were made to theprogram rather than reporting from their financial management system that is compliant with Section200.302.Criteria:2 CFR 200.403(g) states that for costs to be allowed under Federal awards, they must be adequatelydocumented.In addition, Section 200.302 requires that the financial management system must provide for anidentification, in its accounts, of all federal awards received and expended and the federal programsunder which they were received; an accurate, current, and complete disclosure of the financial resultsof each federal award or program; and a comparison of expenditures with budget amounts for eachfederal award.Cause:Due to significant organizational turnover, individuals were not completing timesheets to documentlevel of effort for federal programs. Although management was verbally communicating with theseindividuals during the year and tracking the time they spent on the program within a spreadsheet, thisis not considered adequate documentation. In addition, and also a result of the turnover, certaindocumentation to support non-payroll expenditures was unable to be located.Effect:Cleveland Play House did not have adequate documentation to support all costs charged to the federalprogram. In addition, an ineffective financial management system could lead to incorrectidentification of costs charged to a federal program and an inability to substantiate that double-chargingdid not occur.Repeat finding:This is not a repeat finding.Questioned costs:Non-payroll: $974Payroll: $20,720Recommendation:We recommend that Cleveland Play House develop a policy and procedure to ensure that all hourssubmitted for federal reimbursement are supported with timesheets that are approved by a supervisor.In addition, staff should be made aware of the policy and procedures to ensure retention ofdocumentation for non-payroll expenditures.Views of responsible officials:Management concurs with this recommendation. See also corrective action plan.