Finding Text
Condition: During our testing of the allowable costs/costs principles requirement for the major federal program above, we noted several expenses that lacked documented approvals and therefore the review process could not be verified. Further one expense improperly entered for reimbursement of $5,334 when the actual expense was $53.34. This data entry error created an overbilling for the month in question of $5,281 in unallowed costs. Criteria: Procedures should be in place to review expenses and document approvals to ensure clerical and mathematical accuracy of monthly invoicing to respective federal programming. Cause: Procedures are not currently being consistently applied to review and approve expenses being requested for reimbursement. Effect: As a result of the deficiency noted, our audit procedures identified several transactions where review and approval could not be verified and one unallowed cost. Recommendation: Employees should be reminded of the importance of consistently applying the procedures in place to review and approve all expenditures being requested for reimbursement.