Finding Text
2022-007 Allowable Cost Documentation
Federal Program: Research and Development Cluster (ALN 47.041, Award Period 9/1/19 – 8/31/22)
Federal Agency: National Science Foundation
Criteria: 2 CFR 200.403 requires that costs must be adequately documented.
Condition: We selected 45 non-payroll expenses for testing. Of those 45, 30 were found to have insufficient documentation to determine if the cost were allowable or unallowable to the federal program. The 30 expenses found to have insufficient documentation were purchased on a credit card.
Cause: The Organization did not maintain sufficient internal controls over credit card usage to ensure detailed receipts were available to support the expense charged to the federal program.
Effect: The Organization was not compliance with 2 CFR 200.403 which requires that costs charged to federal programs are adequately documented.
Identification as a repeat finding, if applicable: The finding is not a repeat finding of the prior year.
Recommendation: We recommend the Organization implement internal controls that require detailed receipts to be submitted for all credit card charges. The charges listed on the receipts should be reviewed for allowability and approved by the appropriate personnel before charging to the federal program.
Response: The Organization will implement a formal credit card policy which requires that detailed receipts be submitted for review and approval for all credit card charges.
Questioned Costs: $9,987. This is the total known cost from the 30 transactions identified in our sample to have insufficient documentation.