Finding Text
Material Weakness in Internal Control over Compliance and Other Matters Criteria:
2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions. In addition, eligible costs must be determined in accordance with generally accepted accounting principles (GAAP).
Condition:
During our testing, we noted there was a lack of supporting documentation and/or approval for expenses charged to the federal programs. It was also identified, there were transactions that were incorrectly charged to the program.