Finding Text
Inadequate Record Retention and Documentation for Federal Expenditures Material Weakness Department of the Treasury Passed through City of Indianapolis and Marion County, Indiana, by and through its Office of Public Health and Safety Passed through Indiana Family and Social Services Administration Passed through The Indianapolis Foundation ALN #: 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification #: 19FG-ARYthMedia-1, 43758, and 66867 Condition: During Fiscal Year 2024, the Organization did not retain sufficient documentation to support certain federal expenditures, as required by the record retention requirements of 2 CFR 200.334. Criteria: 2 CFR 200.334 Questioned Costs: $0 (see context) Context: Out of seven invoices tested, three did not have adequate supporting documentation for certain expenses. In addition, one invoice lacked evidence of review and approval prior to submission to the grantor. Specifically: • For an invoice tested under federal award identification number 19FG-ARYthMedia-1, the Organization was unable to locate support for $1,093 of the expenses billed. Additionally, the Organization underbilled $1,994 of other allowable costs, resulting in no net questioned costs. • For an invoice tested under federal award identification number 43758, the Organization was unable to locate support for certain expenses included on the invoice. However, the supporting documentation obtained exceeded the amount billed; therefore, there were no questioned costs. • For an invoice tested under federal award identification number 66867, the Organization was unable to locate support for $942 of the expenses billed. The Organization also underbilled $1,404 of other allowable costs, resulting in no net questioned costs. In addition, this invoice lacked evidence of appropriate review and approval. Overall, while unsupported costs were noted within individual invoices tested, the Organization incurred allowable expenditures in excess of the amounts billed under the program. Accordingly, no net questioned costs were identified. Cause: Transition in accounting team. Effect: Lack of adequate recordkeeping can result in being required to return cash to the grantor. Identification as repeat finding, if applicable: Yes, 2023-003 Recommendation: We recommend the Organization implement a standardized recordkeeping system for all federal award expenditures that complies with the requirements of the Uniform Guidance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.