Finding Text
Information on the Federal Program: Assistance Listing Number 20.616—National Priority Safety Programs, United States Department of Transportation. Pass-Through Entity: New York State Governor’s Traffic Safety Committee Award Number: HS1-2024-NYS STOP DWI Found.-00199-(088) Compliance Requirement: Allowable Costs, Allowable Activities Type of Finding: Significant deficiency in internal control over compliance Criteria: Per 2 CFR 200.403, costs must be allowable, allocable, and adequately supported to be charged to a federal award. Payments should not exceed the documented amount requested by vendors. Condition and Context: During testing of grant expenditures, we noted management was unable to provide support for a payment made by the Foundation to a county. Specifically, the county invoices provided totaled $16,085 while the Foundation issued a reimbursement check of $20,085, resulting in questioned costs of $4,000. The Foundation included the larger amount on its grant funding request, which was approved and paid by the funding agency. Management was unable to locate the source of the discrepancy. Cause: The Foundation experienced turnover in the grant administrator role during the year. This transaction was processed by the prior grant administrator and the current grant administrator was unable to locate the supporting documentation or other source of the discrepancy. Effect: The Foundation was unable to support amounts paid to the county, resulting in questioned costs as noted above. Questioned Costs: $4,000. Known and likely questioned costs are less than $25,000. Repeat Finding: No Recommendation: We recommend the Foundation strengthen its document retention and review process over payments to ensure that all amounts paid are supported by appropriate documentation. Views of Responsible Officials: Management of the Foundation concurs with this audit finding.