Finding Text
#2023-010 – Major Federal Award Finding – Document Retention
Nature of Finding: Compliance Finding – Uniform Guidance Administrative Requirements and Material Weakness in Internal Controls Over Compliance
This is a repeat of prior year finding #2022-011.
Criteria/Condition: Federal regulations 2 CFR 200.334 provides that a non-federal entity must retain all records pertinent to a federal award for a minimum period of three years from the date of submission of the annual financial report. We noted during testing that records were not consistently being maintained.
Cause/Context: For 4 of the 40 expenditures selected for testing, the Organization was unable to provide appropriate invoice documentation supporting the amount charged to the grant.
Effect: Federal expenditures could be charged to the grant at incorrect amounts or for unallowable costs.
Recommendation: We recommend the Organization implement a document retention policy that is consistent with the federal document retention requirements.
Views of Responsible Officials and Planned Corrective Actions: MARR will retain a CPA consultant to implement a document retention policy that is consistent with federal document retention requirements.