Finding Text
Pass-Through Entity: Federated States of Micronesia National Government Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: Various Compact Sector Grants Area: Period of Performance Questioned Costs: $2,400 Criteria: In accordance with the FSM-US Fiscal Procedures Agreement under Article VI Post-Award Requirements 1(c), the Government of the Federated States of Micronesia shall liquidate all Obligations incurred under a Grant not later than 90 days after the end of the funding period. Condition: For 1 (or 4 %), out of 25 transactions tested, purchase orders were not provided. Accordingly, the State was not able to substantiate that the cost was incurred/obligated within the period of performance. Cause: The State lacks internal controls over maintaining adequate records documenting the period of performance procedures performed. Effect: The State may be in noncompliance with the applicable period of performance requirements. Total question costs identified are $2,400. Recommendation: Responsible personnel should maintain records that document the period of performance procedures performed. Views of Responsible Officials: The State agrees with the finding and Corrective Action is described in the Corrective Action Plan.