Finding 1156482 (2024-007)

Criteria: Allowable Costs – Federal program expenditures must meet the requirements of the Uniform Guidance, contract terms and be adequately documented. Condition: During allowable cost testing, we noted that there was a lack of internal controls over allowable costs. We noted items that did not include proper support, were outside the contract period, or were for the incorrect amount. Cause: There is a significant deficiency in internal controls over the compliance for the allowable costs/cost principles compliance requirement. Mission Edge has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance with the allowable costs/cost principles requirements. Effect: Costs were charged to the federal award that may not be allowable in accordance with the allowable costs/cost principles requirements. Questioned costs: Based on testing and projection of the potential unallowable costs the questioned costs are under the $25,000 threshold. Context: Management did not have sufficient controls over allowable costs in place and instances of unallowable costs were discovered. Repeat finding: No Recommendation: Management should develop procedures that will ensure compliance with the Uniform Guidance and ensure that sufficient documentation is kept for transactions. Views of responsible official and planned corrective action: Management’s response is reported in “Management’s View and Corrective Action Plan” included at the end of this report.