Finding Text
Allowable Costs/Cost Principles
U.S. Department of Agriculture/Passed Through State of Nevada Department of Agriculture
ALN 10.553, 10.555 – Child Nutrition Cluster
Award Date – 7/1/2023–6/30/2024
Criteria – Management is responsible for implementing internal controls related to Allowable
Costs and Cost Principles, as required by the Uniform Guidance.
Condition – Evidence of review and approval prior to the payment could not be provided for
one of the payroll expenditures tested.
Questioned Costs – None
Context/Sampling – A non-statistical sample of four payroll expenditures out of 24 payroll
expenditures was selected for testing.
Cause – The School lacked sufficient internal controls to ensure that the review and approval
of costs were documented prior to payment of the expenditure.
Effect or Potential Effect – There is a risk that unallowable costs may be charged to the
program without being detected by the School.
Recommendation – We recommend that the School document review and approval of all
expenditures prior to expenditure to ensure compliance with the Uniform Guidance.
Views of Responsible Officials and Planned Corrective Actions – A process was put in place
in January 2024 to ensure that all principal approvals are documented in writing or electronic
approval in the system which can be date stamped by the system. Payroll will not be run,
nor grants submitted, until proper approval is received.