Finding Text
Condition and Context: When testing the allowable costs for the Affordable Care Act Personal Responsibility Education Program for the year ended September 30, 2022, we selected a sample of 40 disbursements. Three of these 40 disbursements were credit card purchases totaling $342 for which supporting receipts could not be located, and another one of these 40 disbursements was a credit card purchase for $15 relating to another program that was misclassified as an allowable cost for the Affordable Care Act Personal Responsibility Education Program. / Criteria: All related documentation used as a basis for claiming costs under federal awards must be retained for audit in accordance with the record retention requirements contained in 2 CFR 200.333. Direct costs should be identified specifically with a particular final cost objective, such as a federal award, or with other internally or externally funded activity, or should be directly assigned to such activities relatively easily with a high degree of accuracy. / Effect: Total federal expenditures of $357 were identified as questionable costs. This may also indicate other credit card expenditures that may have been charged to federal awards that were not supported or that may have been misclassified to that federal award. / Cause: According to the management of Alternatives For Girls ("AFG"), the employee who made the credit card purchases submitted the actual receipts in hard copy to AFG's finance staff in place at the time. However, AFG's finance department had significant turnover during the year ended September 30, 2022, and the current finance department team could not locate the receipts. / Questioned Costs: Known and likely questioned costs are less than $10,000. / Recommendation: We recommend that management strengthen its processes for processing, reviewing, approving, and classifying credit card purchases, as well as maintaining documentation to support such transactions.