Finding Text
2024-006 Significant Deficiency – Invoice and Receipt Support Differences 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 and control testing for allowable cost/allowable activities, 8 instances were noted in which support provided totaled amounts different than what was submitted to the grantor on the FSRs (Financial Status Reports). Context: 8 of the 14 invoice sample selections the support did not match the FSR amounts. However, only 3 of the 8 sample items resulted in invoice amounts being lower than what was reported to grantor, resulting in questioned costs. Cause: Management did not have controls in place to track and match expenditures of federal awards to amounts submitted on FSRs. Effect: 3 instances in which invoice support was less than amounts submitted on FSRs, resulting in known questioned costs of $872, and likely questioned costs of $1,309 based on the projection of the error across the population. Recommendation: Establish a system of controls to reconcile invoices to amounts billed under federal awards. Views of Responsible Officials and Planned Corrective Action: The assistant finance officer will reconcile invoices to the amount of the federal award. The chief finance officer will review and submit the FSR for approval.