Finding Text
Criteria: The requirements for matching are contained in 2 CFR Section 200.306, This states that any matching costs meet certain criteria including that they be verifiable from the entity’s records. Per the terms and conditions of the award, it is understood and agreed that PAX must provide the minimum amount of cost sharing as stipulated in the budget approved by the Grants Officer. PAX must maintain written records to support all allowable costs which are claimed as being its contribution to cost participation. Condition: Per the terms of the award, PAX agreed to expend a share of the total program cost financed by PAX and/or others from non-federal funds in accordance with 2 CFR 200.306. PAX’s books and records did not contain the necessary information to verify whether this matching requirement was met. Citation: 2 CFR 200.306 Cause: PAX did not have an effective internal control system in place for monitoring that the cost sharing requirement was being met. Effect: The accounting team did not allocate the expenses related to the cost share in the books and records throughout the year. However, they provided schedules that detailed the expenses related to the cost share after year-end as part of the audit process. Questioned Costs: None. Context: This sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: Yes Recommendation: We recommend that an internal control system be established to monitor PAX’s share of the award costs. This system should include tracking these expenses in a separate cost center in the books and records and reconciling to the amount reported to the grantor as well as the budget. View of Responsible Officials: See Corrective Action Plan attached.