Finding Text
Criteria: 2 CFR 200.403(g) indicates costs must be adequately documented in order to be considered allowable.
Condition and Context: We selected 40 disbursements for testing during the audit and noted one expense to replenish petty cash which lacked adequate documentation. We tested 40 expenses for a total of $14,423 of claimed disbursements and identified known questioned costs of $650 which resulted in likely questioned costs of $9,742 using an error rate of 5% over total disbursements for 2023 of $216,163. Total likely questioned costs were 4% of overall ESG expenditures for 2022. Our sample was not considered to be a statistically valid sample.
Cause and Effect: The lack of adequate documentation to support time charged to the federal award combined with the finding 2023-002 resulted in material noncompliance to the referenced compliance requirements and to the program as a whole.
Recommendation: We recommend the Association implement procedures to ensure that the Association's policies and procedures requiring the maintenance of documentation to support expenditures claimed under federal awards be followed consistently for all claimed expenditures.
Views of Responsible Officials and Planned Corrective Actions: The Association agrees with the finding and plans to implement their corrective action during October 2024.