Finding 1238425 (2025-002)

Finding 2025-002 Identification of the federal program: 90.100 – Denali Commission Program Noncompliance over policies Criteria: 2 CFR Part 200.302(b)(7) requires the financial management system to include written procedures for determining the allowability of costs. Condition: The Association has not developed written procedures for determining the allowability of costs. Cause: Management did not have written procedures for determining the allowability of costs. Effect: Unallowable costs could be charged to the program. Questioned Costs: None Recommendations: Management should develop written procedures as required by 2 CFR Part 200.302(b)(7). Views of responsible officials: Management concurs with this audit finding and will take corrective action by developing a written policy for the determination and segregation of unallowable costs from allowable costs. Informal unwritten procedures have been taken in the invoice review process prior to payment to ensure unallowable costs are separated from allowable costs, but a written policy has not been previously developed.