Finding Text
Criteria:The Services and TransitionalHousingforTraffickingVictimsprogramrequires thatcosts chargedto theFederalaward shallbeallowable and supportable in accordancewith 2CFR§ 200.403.Adequate sourcedocumentationmustberetainedtosupportreimbursedcosts. Condition:During testing ofreimbursedexpenses charged tothefederalaward,itwasnotedthataninvoice wasnotretained foroneprogram participant.Theprogramparticipanthadreceivedtheoriginalreceipts;however,copies ofallrequiredsupportingdocumentation couldnotbeobtained. Asa result,adequate source documentationwas notavailable to fully supportthereimbursedexpense. Cause:The conditionoccurreddue to inadequate proceduresforensuringthatinvoices andsupportingdocumentationwereretainedbytheorganizationpriortoreimbursement.Specifically,reliance onparticipants to maintain originalreceipts without obtainingand retainingcopies resulted inincomplete documentationbeingavailable forauditpurposes. QuestionedCost:$-0- Effect:The lackof retained invoices limits theability to verify thatreimbursed expenseswereallowable, properly supported,and in compliancewith federalrequirements.This conditionincreases theriskofquestioned costs,noncompliance with federalrecord retentionrequirements,andpotentialrepaymentofunsupportedexpenditures. Recommendation:Managementshould implementandenforceprocedures to ensurethatallinvoices and supportingdocumentationareobtained and retained priortoassistance beingprovided toparticipants.Additionally,managementshouldprovideguidancetoparticipantsregardingdocumentation requirementsand periodically reviewreimbursementfiles to confirmcompliance with federalrecord retentionrequirements. Classification: Compliance finding and control deficiency in internal controls