Finding Text
Finding 2021-001: Missing Supporting Documentation (Expenses)
Information on the Federal Program: Assistance Listing Numbers 93.914 and 93.917
Criteria or Specific Requirement: Title 2 CFR 200 Section 200.333 establishes requirements of
retention of financial records, supporting documents, statistical records and all other non-Federal entity
records as it relates to Federal awards. Although our exceptions did not disclose exceptions to Federal
award documentation specifically, UHU is required to maintain a system of internal controls to comply
with its own record retention policy for non-Federal activity.
Condition: During the current year audit, we had significant difficulty in obtaining supporting
documentation around general expenditures, particularly vendor invoices and contracts. Although our
testwork did not disclose exceptions to Federal award documentation specifically, UHU is required to
maintain a system of internal controls to comply with its own record retention policy for non-Federal
activity.
Context: Our audit procedures consisted of control testwork over UHU's cash disbursement cycle as
well as substantive testing of Federal expenditures.
Cause: UHU did not maintain proper systems to ensure proper filing and maintenance of
documentation supporting various expenditures.
Effect or Potential Effect: We were unable to verify certain expenditures recorded in the general
ledger, verify payee of the funds, verify terms or contract, or confirm each amount in question for certain
transactions.
Question Cost: Undetermined
Identification as a Repeat Finding, if Applicable: Repeat of Finding 2020-001
Recommendation: We recommend UHU implement a filing system in which all supporting
documentation is filed and maintained so that it can be easily accessed for future reference.