Finding Text
2023-002 Surveys, Studies, Investigations, Demonstrations, and Training Grants and Cooperative – Assistance Listing No. 66.436; Grant No.84039801, 84039601,94039501; Grant Period – Year ended December 31, 2023.
Statement of Condition: Internal control weakness - documentation of approval over allowable costs could not be located for select expenses, and ineffective control procedures over posting of approved indirect cost rate allocation.
Criteria: National Association of Wetland Managers’ internal control policies and procedures, indirect cost negotiation agreement, and the Uniform Guidance.
Cause: Procedures are in place requiring supervisory approval of documentation before costs are coded to grants, but procedures were not performed on all invoices. Also, ineffective control procedures over posting of indirect payroll cost allocation as indicated by compliance finding.
Effect: Increased risk of noncompliance.
Questioned Costs: Not identified.
Perspective: N/A.
Identification: Non-repeat.
Recommendation: Management should review above criteria and modify control or perform control procedures.
Views of Responsible Officials: Approval of allowable cost has been addressed via email. Some of the invoices are emailed to the Executive Director, who approves them by giving instructions regarding payment. Both invoice/payments questioned had extensive email documentation, which was provided to Ron Beaulieu on 10/21/2024.
Auditors’ Evaluation of Views of Responsible Officials: Management’s Response is in conflict with above Statement of Condition, Criteria, and Cause.