Finding Text
Criteria According to the Code of Federal Regulations, 200 CFR 200.303 requires the Organization to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the Organization is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. One of those requirements is to have a knowledgeable person of federal cost approve disbursement before being paid. Condition The disbursements tested none of them had written approval to be paid. Cause Management visually/verbally reviewed disbursement before processing but did not realize they needed to document that review and approval process. Effect Unnecessary or unapproved expenses could be processed and charged to federal programs. Context We test 60 disbursements of which none had written proof of review or approval to be processed. Recommendation Management should take the extra time needed to document their approval process as required by federal regulations.