Finding Text
Finding # 2025-002 Type: Significant deficiency over allowable costs Assisting Listing Number: 11.463 Federal Agency: Department of Commerce Name of Federal Program: Habitat Conservation Requirement: Costs charged to government grants should have supporting documentation and appropriate review and approval of the amounts charged. Condition: The audit identified several instances where the review and approval control did not operate as intended. Context: Four out of twenty-one invoices tested included immaterial unallowable amounts (3) or could not be substantiated (1). In addition, time sheets for three people out of ten were missing approvals. This appeared to be isolated to August. Cause: The controls as designed did not identify costs that should not have been charged and documented approvals for time sheets were not retained. Effect: Unallowable or inaccurate costs could be charged to grants. Questioned Costs: None. Recommendation: There should be a more rigorous review of all amounts charged to contracts, particularly those involving credit card charges. In addition, there should be a documented control to make sure all time sheets are approved before submission.