Finding Text
2023-002 – Approval of Expenditures
Federal Agency: U.S. Department of the Interior; U.S. Fish & Wildlife Service
Federal program title: Endangered Species Conservation Recovery Implementation Funds
Assistance Listing Number: 15.657
Award Period: 09/30/2020 – 09/30/2026
Type of Finding: Compliance and significant deficiency in internal control over compliance
and
Federal Agency: National Science Foundation
Federal program title: Research and Mentoring for Postbaccalaureates in Biological Sciences Assistance Listing Number: 47.074
Award Period: 04/01/2022 – 09/30/2026
Type of Finding: Compliance and significant deficiency in internal control over compliance
Criteria:
2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statues, regulations, and conditions of the federal award.
Condition:
During our review of charges to federal programs, many charges were incurred on employees’ credit cards. While most credit statements and related receipts and invoices are reviewed by either the Vice President of Conservation and Research or the Director of Applied Conservation, we noted instances of no employee reviewing the Vice President of Conservation and Research, the Director of Applied Conservation, or certain department heads’ credit card charges.
Questioned Costs:
None noted.
Context:
Endangered Species Conservation Recovery Implementation Funds: We noted nine instances from the sample of fifty-three credit charges that did not have documentation of proper approval.
Research and Mentoring for Postbaccalaureates in Biological Sciences: We noted one instance from the sample of twenty-two credit charges that did not have documentation of proper approval.
Cause:
There was no evidence of the Garden’s formal process of ensuring all expenditures are appropriated documented and approved.
Effect:
For transactions related to federal grants, without the appropriate supporting documentation, charges may be disallowed.
Recommendation:
We recommend that management establish controls and implement policies to ensure that support is obtained and maintained for all expense transactions.
Management’s Response:
Refer to the Correction Action Plan.