Finding Text
Condition – The trial balance for a Federal cost reimbursement grant showed that Federal drawdowns exceeded allowable costs.
Criteria –Federal drawdowns should be limited to amounts necessary to cover project costs.
Cause – Turnover in the top accounting position, Director of Finance combined with a physical relocation resulting in a temporary inability to locate some documents.
Effect – Federal drawdowns exceeded allowable costs by approximately $23,000 during the year.
Recommendation – We recommend that procedures be implemented to ensure drawdowns are limited to amounts necessary to cover project costs.
Views of Responsible Officials and Planned Corrective Actions – The leadership at IHR takes this finding very seriously and to ensure more accurate record keeping, has hired additional support with the skills necessary for maintaining a more comprehensive and accessible electronic record keeping system. This will also be accomplished by enforcing IHR’s existing procedures of authorizing, scanning, and properly coding documents by Accounts Payable.