Finding Text
Assistance Listing Number: 93.558 Criteria: The Organization must comply with the cost standards set out at the OPM Cost Accounting Standards. Specifically, allowable costs must be adequately supported by invoices, cancelled checks, wire transfers, or other forms of documentation evidencing a disbursement and substantiating that a cost was incurred by the Organization during the period of the award. Condition: A sample of 40 expenses was selected for testing. During the testing, we identified 1 expense that did not have sufficient documentation to support the amount charged to the grant and another expense that was charged to the incorrect grant. Questioned Costs: Unknown Context: In one case the Organization failed to provide adequate documentation to support amounts charged to a grant and in another, the incorrect grant was charged for a grant expense. Cause: Underlying support as required by the State of Connecticut Single Audit Act was not properly maintained and the wrong grant was charged for an expense. Effect: The effect is that costs charged to the grant could potentially be incorrectly stated and/or misallocated as of year-end. Repeat Finding: No. Recommendation: We recommend management enhance internal policies and procedures to ensure underlying supporting documentation is fully retained going forward and the proper grant is charged. Views of Responsible Officials: Management concurs with the finding. Refer to the separate corrective action plan.