Finding Text
2024-004 Significant Deficiency – Missing Support Criteria and Condition: In order to stay in compliance with federal requirements for allowable activities/allowable costs, the Organization must maintain documentation to support allowable federal expenditures. During compliance testing for allowable cost/allowable activities, invoice support could not be provided for 2 sample items totaling $4,500. Context: Allowability of the expenditures under the federal awards could not be evaluated. Cause: Management did not have controls in place to download invoices and support from the vendor and was not able to go back that far when searching for the support when requested for the audit. Effect: The inability to evaluate allowability of expenditures under federal awards resulted in known questioned costs of $4,500, and likely questioned costs of $6,753 based on the projection of the error across the population. Recommendation: Establish a system of controls to maintain support for expenditures. Views of Responsible Officials and Planned Corrective Action: A process has been put in place to keep all backup documentation for expenditures in bill.com. The backup documentation is entered with the invoice for payment.