Finding Text
Finding 2021-011 Expenditure Documentation - Activities Allowed and Unallowed,
Allowable Costs/Cost Principles – Noncompliance and Material Weakness
in Internal Control Over Compliance
Agency Department of the Treasury
ALN 21.019
Program COVID-19 - Coronavirus Relief Fund
Award Year FY 2021
Pass-Through Agency State of Alaska Department of Commerce, Community, and Economic
Development
Pass-Through Entity
Identifying Number
20-CRF-024
Criteria 2 CFR 200.403(g) states that for costs to be allowable under federal
awards, they must be adequately documented and there must be sufficient
documentation.
Condition During our testing of nonpayroll disbursements, we noted the following
exception: Three of the 62 disbursements sampled did not have adequate
supporting documentation.
Cause Policies and procedures were not appropriately adhered to in certain
instances to ensure that supporting documentation was maintained
correctly to evidence that costs were allowable and that an appropriate
level of review and approval was completed prior to charging costs to a
federal program. Effect or potential
effect
We were unable to confirm the allowability and existence of three
disbursements charged to the program.
Questioned costs None over the questioned costs reporting threshold.
Context We tested a sample of 62 nonpayroll transactions totaling to $947,814 from
a population of 470 transactions totaling to $2,768,962. We noted three
exceptions as noted in the condition. This is a condition identified per
review of the City’s compliance with the specified requirements not using
a statistically valid sample. The known amount of the three exceptions is
$1,608.
Identification as a
repeat finding
Not a repeat finding.
Recommendation Management should review policy and ensure documentation supporting
each expenditure will be retained.
Views of
responsible officials
Management concurs with the finding. Management will implement policies
and procedures to ensure supporting documentation over expenditures are
retained.