Finding Text
U.S. Department of Agriculture Pass-through Entity: South Carolina Department of Agriculture Program Name: Food Distribution Cluster Federal Assistance Listing Number: 10.568-CL Material Weakness – Activities Allowed and Allowable Costs Finding 2024-004 Criteria: The Organization should maintain proper documentation of the review and approval of reimbursement requests for administrative costs. Condition: The Organization did not have documentation that the reimbursement requests were being reviewed and approved prior to submission. Cause: The Organization experienced significant turnover in the finance department during the year, and therefore, the Organization was unable to implement adequate internal controls over the reimbursement request submission process. Effect: The Organization could calculate administrative costs incorrectly or submit costs that are not allowable under the grant for reimbursement. Questioned Costs: No questioned costs reported. Context: There were 4 instances out of 4 samples tested where the reimbursement requests related to the Food Distribution Cluster were not reviewed and approved prior to submission. Identification as a Repeat Finding: 2023-005 Auditor’s recommendation: All documentation of review and approval of reimbursement requests should be formally documented and maintained. Views of Responsible Officials: See Corrective Action Plan