Finding 1106568 (2024-001)

Finding 2024-001: Allowable costs and activities – material weakness in internal controls over compliance and compliance finding. Criteria: The Organization’s internal control procedures over compliance specify that all expenses be reviewed and approved prior to charging to the grant. Condition: During allowable costs and activities testing for the grant, 28 out of 40 expenses tested did not have documented approval. Cause: Prior to the implementation of Ramp, the Organization’s internal policy did not require separate documented approval for budgeted expenses before they were charged to the grant. Since all expenses tested were part of the TWC Robotics grant and aligned with the approved grant budget, purchases were processed without additional approval documentation. This practice resulted in a lack of formal approval records for these transactions, leading to the identified finding. Effect: The Organization’s approval of grant expenses were not fully documented in accordance with the internal control over compliance procedures. Questioned Costs: None Recommendation: Management should ensure amounts charged to the grant are formally approved before the request for reimbursement is submitted. Management’s Response: See corrective action plan.