Finding 1106569 (2024-002)

Finding 2024-002: Allowable costs and activities – significant deficiency in internal controls over compliance. Criteria: The Organization’s internal control procedures over compliance specify that all expenses charged to the grant are supported by an itemized receipt. Condition: During allowable costs and activities testing for the grant, 1 out of 40 expenses tested did not have an itemized receipt. Cause: The expense in question was verbally confirmed as allowable; however, no formal documentation, such as an itemized receipt or written verification, was created or maintained. As a result, the expense should not have been charged to the grant in accordance with the Organization’s internal control procedures. Effect: The Organization’s documentation of grant expenses was not fully obtained in accordance with the internal control over compliance procedures. Questioned Costs: None.Recommendation: Management should ensure amounts charged to the grant adhere to all documentation requirements before the request for reimbursement is submitted. Management’s Response: See corrective action plan.