Finding Text
2023-003 - Allowable Costs/Cost Principles
Federal Program Information:
ALN - 10.760 - Water and Waste Disposal Systems for Rural Communities
Criteria: The following CFR(s) apply to this finding: 2 CRF 200.303
Condition: During audit procedures, it was identified that the Town does not have
invoices and board warrants approved before issuing checks.
Cause: The Town does not have the necessary internal controls over compliance.
Effect: Expenses may not be properly allocated to the grant; this could result in
unallowable expenses being charged and subsequently improperly reimbursed by
federal funds
Identification of Questioned Costs: None identified.
Context: The sample selection consisted of 11 out of 34 transactions. Of the 11
samples, 2 did not have consistent documented approvals from the Town Manager to
ensure that only allowable costs were being charged to the program and 4 out of 11
were lacking Select Board approvals.
Repeat Finding: This is a repeat finding of 2022-003
Recommendation: It is recommended that the Town develop and implement policies
and procedures for documented approval process to ensure that only allowable costs
are charged to the program.
Views of Responsible Officials and Corrective Action Plan: Client agrees with finding
and a version of their response can be found in the Corrective Action Plan. Please see
the Corrective Action Plan issued by the Town of Livermore Falls.