Finding Text
2023-004 Allowable Costs (Material Weakness)
U.S. Department of Treasury 21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: The Uniform Guidance sets forth factors affecting allowability of costs. Except where otherwise
authorized by statute, costs must meet the certain criteria to be allowable under federal awards. CFR
200.403 (c) states that costs must be consistent with policies and procedures that apply uniformly to both
federally financed and other activities of the recipient or subrecipient. CFR200.403(g) states that the cost
must be adequately documented
Condition: There were multiple amounts paid for which the Organization was unable to supply appropriate documentation and invoices or receipts for which the Organization did not follow their policy for reviewing the invoices/receipts prior to payment.
Cause: The Organization uses Bill.com to make most payments. The payments made directly via an ACH with the bank do not have appropriate documentation maintained. There were also other payments for which the client was unable to locate the documents. There were also invoices/receipts that were not signed off prior to payment.
Effect: The Organization has policies in place for amounts paid through Bill.com, but these policies are not being used with other forms of payments.
Questioned Costs: $342.34. Questioned costs are made up of the total of all invoices tested that did not have appropriate documentation.
Recommendation: Organization should update policy and ensure that all payments made in any form have appropriate documentation. Also, the Organization should follow their stated policy on review of invoices prior to payment.
Views of Responsible Officials and Planned Corrective Actions: The Organization will update policy to ensure that all payments made in any form have appropriate documentation. Additionally, policy on review of invoices prior to payment will be reviewed by Executive Director and Business Manager. Monique Johnson, Executive Director of Allen County Drug & Alcohol Consortium, is responsible for this corrective action. The anticipated completion date is May 31, 2025.