Finding Text
Criteria: Grant reimbursement summaries are required to be submitted on a monthly basis detailing expenses incurred that are allowable under the terms of the grant agreement. Reimbursement requirements, including allowable costs and submission timelines, are outlined in the individual grant agreements. These requirements ensure that only eligible expenditures are reimbursed in a timely manner. Condition: Reimbursement reporting was not completed accurately, as a reimbursement claim was submitted for an amount greater than the allowable and reimbursable expenses incurred. Cause: There is not an adequate internal control system in place to review and reconcile reimbursement claims to underlying supporting documentation to ensure amounts submitted are accurate and reflect allowable costs incurred. Effect: Reimbursement claims cannot be accurately relied upon to demonstrate the Organization has properly reconciled and reported allowable expenses in accordance with the grant agreement. As this relates to reporting metrics, there are no questioned costs identified. Questioned Costs: $3,696 – See “Context” section below. Perspective Information: This issue is not considered to be prevalent as no other issues were noted in the items tested. Repeat Findings: This finding is not a repeat finding. Context: Testing was completed on a sample of five out of twenty-four reports submitted for the calendar year for the above VOCA grant. 20% of the reports had deviations between submitted claims and funds received. Claims were over reported as compared to funds received by $3,696. Recommendation: Internal controls and procedures should be established and documentation maintained to ensure reimbursement claims are reviewed and reconciled to supporting documentation prior to submission, and that only allowable costs in accordance with grant agreements are included. Views of Responsible Officials and Planned Corrective Actions: YWCA acknowledges deficiencies in reconciliation of reimbursement claims.• Implement a standardized reimbursement reconciliation worksheet that ties each grant claim to the general ledger, payroll reports, and underlying invoices prior to submission. • Require documented review and approval of each claim by the designated finance team member, confirming that claimed amounts are allowable, supported, and within the grant period. • Provide staff training on claim preparation, reconciliation, and documentation retention expectations.