Finding Text
Statement of Condition: We found issues with 22 of the 60 expenses reviewed, totaling $18,363.61 that were either incorrectly charged to the program or the invoice could not be located. The following table provides specific details on the noted exceptions/questioned costs. Criteria: Financial records, supporting documents and all other non-Federal entity records pertinent to a Federal Award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of submission of the quarterly or annual report, respectively. Further, 2 CFR 200 Subpart E, Cost Principles section 200.406 Applicable credits states “Applicable credits refer to transactions that offset or reduce direct or indirect costs allocable to a federal award. To the extent that such credits accruing to or received by the recipient relate to allowable costs, they must be credited to the Federal award as either a cost reduction or cash refund, as appropriate.” Effect of Condition: Failure to ensure only allowable and properly supported expenses are charged to the program reduces funding availability for allowable grant activities. Cause of Condition: With respect to those invoices that could not be located, the organization internal audit department reviewed those invoices as part of their audit and the documents could not be located for this audit. In regard to the unallowable expenditures, these relate to gifts in kind, and management was unaware of the regulations relating to applicable credits when filling out the SF-425. Recommendation: As previously recommended by the OBO, the organization should update policies and procedures surrounding the award programs cost allowability to ensure unallowable costs are not charged to the program. Further, it should provide training to staff on updated policies, Federal and Grant Per Diem Program cost allowability requirements, proper expense documentation and retention procedures. Views of Responsible Officials: The organization agrees with the finding. Please refer to corrective action plan on page 47. FY 2022 Expenses
Sample # GL Expense Description Issue Questioned Costs
10 Food and Beverage Lack of supporting documentation $333.17
11 Food and Beverage Lack of supporting documentation $277.73
25-44 Specific Assistance to Individuals Unallowable expenditures $17,752.71
Total $18,363.61