Finding Text
Type of Finding: Significant Deficiency
Criteria: 2 CFR Section 200.303 of the Uniform Guidance requires the non-Federal entity to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award.
Condition: During testing of credit card purchases, we noted that supervisor approvals of expense reports were not timely obtained. Specifically, we identified the following:
Out of 25 credit card transactions tested during our financial statement audit procedures, we noted: 1 transaction did not have proper approvals on file, Approvals for 6 transactions occurred over 90 days after transaction dates, Approvals for 4 transactions occurred over 120 days after the transaction dates, Out of 25 credit card transactions tested during the single audit procedures (ALN #97.024), we noted: Approvals for 9 transactions occurred over 30 days after the transaction dates, Approvals for 8 transactions occurred over 90 days after the transaction dates
Cause: Lack of timely review of credit card expense reports and transactions by supervisors for approval.
Effect or potential effect: Noncompliance with federal award grants for disallowed costs or costs charged to grants without accurate supporting documentation. Additionally, credit card purchases run a higher risk for abuse if not timely reviewed.
Recommendation: We recommend that the Agency ensure that all credit card reports and transactions are timely reviewed by supervisors to ensure proper compliance with federal grant requirements.
Repeat Finding: No
Questioned Costs: None
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See Corrective Action Plan.