Core Issue: The Club failed to maintain proper documentation for wages and invoices related to grant expenditures.
Impacted Requirements: Compliance with grant requirements is at risk due to undocumented salary rates and missing supply invoices.
Recommended Follow-Up: Management should ensure all employee files are updated and maintain documentation for salary increases and purchased supplies.
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 there were twenty-three individuals who did not have documentation of the correct wage that was used on the grant expenditure report. The Club also did not keep any copies of the invoices to back up which expenses are allocated to the grant.
Questioned Costs:
None
Context:
There were twenty-three individuals who could have been paid the incorrect salary amount and the Club could request reimbursement for supplies that were not actually purchased.
Effect:
Undocumented salary rates and supply invoices could lead to unallowable grant expenditures.
Cause:
The Club did not keep accurate employee files and they were not able to find the documentation to support the salary wages at the time of testing.
Recommendation:
Management should review the employee files and keep all the necessary documentation for wage increases. Management should also keep track of supplies that are purchased and keep the necessary documentation for backup.
Management’s response:
The Club has started to keep the documentation for each salary increase and review in the employee’s personnel files and the supplies that have been purchased.