Finding Text
Finding #2023-002:
Type: Significant deficiency over allowable costs
Type: Immaterial noncompliance
Assistance Listing:
21.027 Coronavirus State and Local Recovery Funds
Requirement:
Amounts charged to contract should have adequate documentation supporting the amounts billed.
Condition/Context:
Out of a sample of 40 selected for testing, 3 expenses were missing invoices or receipts.
Cause:
The Organization’s record retention and filing policies were not consistently followed.
Effect:
Improper or inaccurate amounts could be paid or charged to contracts.
Questioned Costs:
None.
Recommendation:
We recommend retaining all supporting documentation for payments. Payments should not be initiated without documentation to support the expense.
Management Response:
Management will implement additional levels of approval and oversight for point-ofsale and invoice spending to ensure that receipts are captured and retained correctly, and that at invoices are reviewed and approved before payment. Management will also provide additional training for spenders on best practices of recording and maintaining records. Management will be consolidating their supply chain so that spenders are able to procure most supplies through one vendor, which will have reporting and tracking capabilities. Management will also be making significant changes to how mileage reimbursement is documented and approved.