Finding Text
Finding 2025-001 Significant deficiency in internal control in internal control over compliance with allowable costs/cost principles requirements. Identification of the Federal Program Federal Agency All Program Title: All Assistance Listing Number: All Award Numbers: All Award Periods: All Criteria In accordance with 2 CFR Part 200, costs charged to a federal award must be necessary, reasonable, allowable under the cost principles, allocable, and adequately documented; entertainment costs are specifically unallowable per 2 CFR 200.438, and costs must be allocated consistently between federal awards and other activities, as inconsistent allocation is not permitted under the Uniform Guidance. Condition During our audit, two expenses totaling $2,917 of 25 tested expenses tested in the indirect allowable cost pool were identified in the indirect cost pool as unallowable costs as they were for meals associated with entertainment for staff morale. Questioned Costs N/A Cause Unallowable costs were charged as the Organization lacked adequate review procedures to ensure charges to the allowable indirect cost pool were in compliance with federal cost principles. Effect The indirect cost pool contained $2,917of known unallowable costs included in the indirect cost population. Repeat Finding No Recommendations We recommend that the Organization strengthen controls over the coding and approval od expenses allowable to the indirect cost pool.