Finding Text
Criteria: Uniform Guidance requires that costs must be adequately documented and retained to demonstrate that only costs for allowable activities or allowable costs are charged to federal programs. Documentation should also support that expenditures are incurred during the period of availability and prior to submission for reimbursement. Condition: For the Transitional Living for Homeless Youth program, support could not be provided for costs charged to the program to support the allowability of costs and activities and whether the charges were incurred during the appropriate period of performance. Out of the 40 transactions tested for this program, adequate supporting documentation could not be provided for 7 transactions. Cause: The Organization did not have adequate internal controls to ensure documentation was maintained to support costs charged to federal programs. Effect: Certain costs could not be supported as allowable, incurred during the appropriate period of performance, or incurred prior to submission for reimbursement that were charged to federal programs. Questioned Costs: None. Repeat Finding: N/A, first year for this finding. Recommendation: We recommend that management continue to implement additional control processes in order to ensure proper controls are in place and followed. Organization Response: Management agrees with this finding.