Finding Text
Significant deficiency in internal control over compliance for allowable costs related to adequate documentation.
Federal Agency: United States Department of Treasury
Program Titles: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.019 & 21.027
Pass-Through Entity: King County
Award Numbers: 6200091
Award Periods: January 1, 2021 through December 31, 2024
Criteria
Internal control requirements contained in Title 2 U.S. Code of Federal Regulations Uniform Administrative
Requirements, Cost Principles and Audit Requirements for Federal Awards, Subpart E ‐ Cost Principles, Section
200.400, policy guide, require that a non‐Federal entity ensure that cost be adequately documented to be
allowable under Federal awards.
The accounting practices of the non-Federal entity must be consistent with cost principles per the policy guide
and support the accumulation of costs as required by the principles and must provide for adequate
documentation to support costs charged to the Federal award.
Condition/Context
In our initial sample of transactions for allowability, the PDA said they did not require support for the 24
transactions we had selected under $75 as a policy. They were subsequently able to locate support for all but 8 of
these transactions totaling $105.
Cause
PDA’s accounting policies and practices over allowable costs seemed not properly implemented to ensure
compliance with the Uniform Guidance requirements.
Effect
Some of the transactions were missing adequate documented support.
Questioned Costs
None.
Repeat Finding
Yes. Recommendation
We recommend that PDA revisits and updates its accounting policies and practices to align with the provisions
outlined in the policy guide of the Code of Federal Regulations. Although the current policy may have been
established with materiality considerations in mind, it is important to note that all charges to Federal awards
necessitate proper documentation, irrespective of the amount involved.