Finding Text
Condition – During our testing of federally funded disbursements, supporting documentation was found to be incomplete. Required invoices, rental reasonableness calculation forms, and evidence of management approval were not retained in the accounting records for several federally funding disbursements at the time of audit completion. In addition, documentation supporting non-financial expenditures was incomplete, and copies of certain contracts were not maintained. Criteria – Uniform Administrative Requirements require non-Federal entities to retain financial records and supporting documentation sufficient to permit the preparation of financial statements and to substantiate costs charged to federal awards. Effect – Although no unallowable costs were identified for the transactions tested, incomplete documentation increases the risk that unallowable or unsupported costs could be charged to Federal programs. *This is a repeated finding from the prior year. The prior year finding number was 2024-003 Recommendation – Management should strengthen documentation retention procedures to ensure that all federally funded expenditures are supported by complete and appropriate source documentation prior to payment, that copies of significant contracts are maintained, and that records of non financial expenditures are properly retained. Management's Response – See management's corrective action plan on page 12.