Finding Text
Criteria: 2 CFR 200.405 maintains that costs which are allocable to more than one program be allocated based on the
proportional benefit or as determined on any reasonable documented basis.
Condition: Of the testing population of 40 transactions, for 4 transactions the Organization was unable to provide
support for the amount allocated to the federal program. For an additional 8 transactions the Organization did not
provide the support for the expenditure.
Views of Responsible Officials: Management agrees with the finding; see corrective action plan.
Cause: Due to limited staffing resources, the Organization was not able to ensure maintenance of adequate
documentation.
Effect: The Organization must be able to demonstrate the expenses allocated to the program is properly supported to
ensure adequate allocation records.
Questioned Costs: Unknown
Recommendation: Management should review and refine its process of allocating costs by grant to ensure that the
costs are supported by a system of internal controls which provides reasonable assurance that the charges are
accurate, properly allocated, and reasonably reflect the proportional benefit tot hat program.