Finding Text
Finding 2021-005
Activities Allowed and Unallowed, Allowable Costs, Period of
Performance – Material Weakness in Internal Control over Compliance and
Noncompliance
Agency U.S. Department of Treasury
Program ALN: No. 21.019 COVID-19 Coronavirus Relief Fund
Award Year 2021
Pass-Through Agency State of Alaska Department of Commerce, Community, and Economic
Development
Pass-Through Entity
Identifying Number
20-CFR-029
Criteria or
Specific
Requirement
2 CFR Subtitle A Chapter II Part 200 Subpart E states that a non-Federal entity
must provide for adequate documentation to support costs charged to the
Federal Award.
2 CFR Subtitle A Chapter II Part 200 Subpart F section 200.516 states that
the auditor must report known questioned costs when likely questioned costs
are greater than $25,000 for a type of compliance requirement for a major
program.
Condition Testwork over a sample of nineteen nonpayroll transactions charged to the
Coronavirus Relief Fund Grant identified that two transactions, totaling
$4,891, lacked supporting documentation.
Cause Internal controls did not ensure that proper supporting documentation was
retained in accordance with 2 CFR.
105
Effect or potential
effect
Questioned Costs
Context
Repeat Finding
Recommendation
Views of responsible
officials
Testwork over nonpayroll transactions charged to the Coronavirus Relief Fund
Grant identified questioned costs.
$4,891
BDO tested a sample of nineteen nonpayroll transactions and identified two
transactions that lacked supporting documentation. The known questioned
costs extrapolated over the total population exceeded the reporting threshold
of $25,000 for likely questioned costs.
No.
Management should ensure that purchasing policies and procedures are
properly designed, implemented, and operating effectively to ensure
adequate documentation is retained to sufficiently support procured goods
and services charged to federal awards.
Management agrees with the finding. Management is currently undergoing an
upgrade in record retention policies and procedures.