Finding Text
Item No. 2025-002 – Missing Supporting Documentation Applicable to: All Federal Awards, including Higher Education Student Aid (ALN 84.031) and Research & Development (ALN 12.351) Criteria University policy requires that vendor invoices be maintained as supporting documentation for all federal award expenditures. Such documentation must be submitted and retained in accordance with established procedures. Condition Testing identified one instance in which the supporting vendor invoice for a disbursement could not be located or provided for audit.Cause The University did not retain required supporting documentation, indicating a lapse in record retention controls. Effect The absence of supporting documentation results in noncompliance with internal control requirements and increases the risk that unsupported or unallowable costs may be charged to federal programs. Questioned Costs None. Recommendation Management should reinforce compliance with documentation and record retention policies, ensuring that all required support is properly maintained and readily accessible. Periodic monitoring should be implemented to promote sustained compliance. Views of Responsible Officials Management concurs with the finding. Management acknowledges the instance identified in which supporting documentation for a federal award disbursement could not be located at the time of audit. While this appears to be an isolated occurrence, the University recognizes the importance of maintaining complete and readily accessible documentation to support all federal expenditures in accordance with institutional policy and federal compliance requirements. The University will reinforce documentation and record retention requirements with all relevant personnel, including finance staff, grant administrators, and principal investigators. Additionally, management will implement enhanced controls to ensure that all required supporting documentation is properly maintained and centrally accessible. This will include transitioning toward a more standardized and, where feasible, electronic document management process to reduce the risk of missing records.Furthermore, periodic monitoring procedures will be established, including routine reviews of disbursement files to confirm the presence of required supporting documentation. Any identified deficiencies will be promptly addressed, and corrective actions will be taken to prevent recurrence.