Finding 1156910 (2024-002)

Support for Employee Reimbursement Transactions – Allowable Costs Criteria: 2 CFR Part 200.403(g) requires that costs should be adequately documented to support the nature and amount of a transaction for such charges to be allowable under federal awards. In addition, 2 CFR Part 200.334 requires recipients to maintain financial records sufficient to show compliance with federal statues, regulations, and terms and conditions of the award. Condition: During our audit we identified certain transactions without adequate documentation. Context: A review of 23 disbursements totaling $90,636 noted 2 requests for mileage reimbursement that were not supported. Cause: Supporting calculations and documents were not obtained from employees requesting mileage reimbursements. Effect: Costs could be deemed unallowable by the awarding agency if not properly substantiated. Questioned Costs: $141 of known costs charged to federal awards without adequate documentation. The estimation of possible additional questioned costs is $1,302. Recommendation: We recommend the Organization reiterate its policy to employees to provide supporting calculations and documents when requesting reimbursement for business expenses prior to making payment. View of Responsible Officials and Planned Corrective Action: We are in agreement with the finding and will reinforce our policies on reimbursements.