Finding Text
Finding: Improper cash draws- expenses including non-cash accruals Criteria: Cash Management As discussed above, amounts drawn should be related to actual expenditures. During our testing, we noted changes in the accrued vacation amounts being allocated to the UC Programs. Vacation when paid out is reflected in salary expense, therefore the vacation expense account does not reflect actual Cash expended. Condition, Context, and Cause: During our testing, we noted changes in the accrued vacation amounts being allocated to the UC Programs. Vacation when paid out is reflected in salary expense, therefore the vacation expense account does not reflect actual Cash expended. As such, vacation accruals charged to the grant have been included in the Summary of Unallowable Costs. See discussion above at 2024-006. For additional context. Result: Amounts identified as unallowable costs per the compliance guidance have been included in the contract liability as disclosed in Note 12. See the Summary of Unallowable Costs and Questioned Costs tables for detail on page 56. Recommendation: The auditors recommend the Organization re-implement internal controls to track allowable expenditures and reconcile qualifying costs with cash draws.