Finding 1160396 (2023-005)

Finding 2023-005: Significant Deficiency – Documentation Retention Federal grantor: Department of Commerce Condition: The Chamber was unable to provide supporting documentation for one expense sample. Criteria: According to 2 CFR § 200.334, recipients of federal awards must retain financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a federal award for a period of three years from the date of submission of the final expenditure report. Cause: The lack of documentation appears to result from inadequate procedures or oversight in retaining and securely storing required financial records related to the federal program. Effect: Failure to retain supporting documentation compromises the Chamber's ability to demonstrate allowability of costs, may result in questioned costs, and exposes the Chamber to risk in audits or federal monitoring reviews. Recommendation: We recommend the Chamber enhance its record retention policies and internal controls to ensure that all documentation supporting federal program expenditures is retained in compliance with 2 CFR § 200.334. Staff responsible for federal grants should receive training on documentation and retention requirements. Views of Responsible Officials and Planned Corrective Actions: The Chamber agrees with the findings and will improve its record retention practices to ensure all supporting documentation is properly maintained in compliance with federal requirements.