Finding Text
Criteria: In accordance with 2 CFR 200.405, costs must be allocated to the projects based on the proportional benefit. If this cannot be determined, costs may be allocated or transferred to benefitted projects on any reasonable documented basis. Condition: For the year ended December 31, 2024, AEA did not maintain support for their allocation methodology for 9 cash disbursement items selected. Allocations amounts were determined by the current year’s management. Cause: The expense allocations may not be appropriate. Effect: AEA is not in compliance with 2 CFR 200.405. Questioned Costs: None reported. Context: A random sampling of the federal expenditures. Repeat Finding: This finding was not corrected. See finding item 2023-102 in the prior year findings. Recommendation: We recommend that AEA review and reestablish their allocation methodology for allocated costs. View of Responsible Officials: See management’s corrective action plan.