Finding Text
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the Organization is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization did not have proper review procedures in place to determine employees? qualifications for individual incentive pay that was allocated to the program. Cause: The Organization has limited staffing and did not have proper controls in place relating to review of incentive pay per individual. Effect: There is a reasonable possibility that the Organization could submit inaccurate information. Questioned Costs: None reported. Context: A nonstatistical sample of 60 transactions were selected for testing or $31,103 out of $780,498 of eligible expenditures. Repeat Finding from Prior Years: No Recommendation: We recommend the Organization implement a control process which includes a secondary review and approval of the summarized final expenditure listing used to claim the allowable costs under the federal program. Views of Responsible Officials: Management agrees with the finding.