Finding Text
Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust internal controls to ensure compliance with cost principles for all transactions charged to the grant.
Condition: During allowable cost testing for federal grants, for 43 out of 77 transactions tested, the amount charged to the grant did not agree to the cost allocation plan.
Cause: Funding percentages in the accounting system did not match the cost allocation plan.
Effect: The cumulative effect of the exceptions noted during testing resulted in the grants being undercharged by the Organization.
Questioned Costs: None Recommendation: Management should ensure amount charged to the grants agree to the approved percentage per the cost allocation plan.