Finding Text
Item #2022-1 ? Control over allowable costs Criteria: The Corporation must have controls in place for to ensure that all costs are allowable. Condition: Internal controls over allowable costs were not consistently followed. Cause: Personnel of the Corporation did not follow internal control procedures when paying certain invoices. Effect or Potential Effect: Failure to approve invoices could result in disbursements of cash made for unallowable expenditures. Questioned Costs: None noted Context: The discovery of the condition was made during sampling allowable cost transactions. During sampling procedures, it was noted that 12 out of 25 transactions did not have approval signoff on the invoices. One out of 25 invoices was not able to be provided to support expense. Recommendation: Management should ensure that internal controls over allowable costs are being followed. Reporting View of Responsible Official: Management of SLI Warren House Inc. agrees with the finding and the auditor's recommendations have been adopted.