Finding Text
Criteria or specific requirement:
Management is responsible for ensuring that the Club complies with all grant requirements.
Condition:
During the audit it was noted that instances of wages submitted for reimbursement for two Club employees were more than gross wages that should have been assigned to the grant based on the amount of the paycheck and the percentage allocation.
Questioned Costs:
Questioned costs consist of the difference between what was submitted to the grant for reimbursement for the specific paychecks tested and the actual costs that should have been submitted, for an amount of $15,478.
Context:
Gross wages for the two employees were incorrectly entered into the grant expenditure report.
Effect:
Grant reimbursement requests could be misstated if discrepancies are not caught before they are submitted for reimbursement.
Cause:
Gross wages for two employees were entered incorrectly in the grant expenditure report and the inaccurate entry was not caught before the reimbursement requests were submitted.
Recommendation:
Management should review grant expenditures carefully before they are submitted for reimbursement.
Management’s response:
The Club plans to review the issue with its current procedures and revise them as necessary to provide better controls over grant expenditures.