Finding 1061628 (2021-003)

2021-003 Criteria: Uniform Guidance requires that costs must be adequately documented and retained to demonstrate that only costs for allowable activities or allowable costs are charged to federal programs. Documentation should also support that expenditures are incurred during the period of availability and prior to submission for reimbursement. Questioned Costs: $300,000 Condition: Supporting documentation could not be provided for costs that were charged to the program to support the allowability of costs and activities and whether the charges were incurred during the appropriate period of performance. Out of the 60 transactions tested for this program, adequate supporting documentation could not be provided for 5 transactions. Cause: The Organization did not have adequate internal controls to ensure documentation was maintained to support costs charged to federal programs. Effect: Certain costs could not be supported as allowable, incurred during the appropriate period of performance, or incurred prior to submission for reimbursement were charged to the program. Recommendation: We recommend the Organization continue to follow the established internal controls and provide additional training to avoid additional errors. Organization Response: Management agrees with the finding.