Finding Text
2023-002 - Allowable Costs/Cost Principles
Criteria: According to federal regulations, expenditures charged to federal grants must follow the allowable cost principles found in 2 CFR Part 200, subpart E.
Additionally, 2 CFR.200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.
Condition: During our testing of federal expenditures, we noted that certain expenses were submitted twice for reimbursement.
Cause: Internal controls surrounding the review and submission of reimbursement requests are not properly implemented to detect and correct errors.
Effect: The Organization submitted duplicate expenditures in two instances.
Questioned Costs: $83,718
Statistical Sampling: Statistical sampling was not used in making sample selections.
Recommendation: We recommend that management of the Organization review internal controls and ensure they are properly designed and implemented to ensure that expenditures are allowable under federal regulations.
Views of Responsible Officials: Management agrees with this finding and their response is included in the corrective action plan.