Finding Text
Title 2 U. S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), 2 CFR 200.403(g) outlines the factors affecting allowability of costs charged to a federal award, specifically that costs should be adequately documented.
While testing journal entries recorded to cash in the Special Revenue Fund, which accounts for federal programs, we noted several journal entries made by the Board to cash and expenditures that did not include documentation to support the expenditures. One of these journal entries charged costs totaling $35,913.40 to the Supporting Effective Instruction State Grants, a nonmajor federal program. The Board did not have procedures in place to ensure costs charged to the Supporting Effective Instruction State Grants were adequately documented. As a result, the Board did not comply with the Uniform Guidance as it pertains to documentation of costs charged to the Supporting Effective Instruction State Grants and questioned costs of $35,913.40 will be reported for the Supporting Effective Instruction Grants.
Recommendation
The Board should establish procedures to ensure all costs charged to federal programs, including
journal entries, are supported by adequate documentation.
Views of Responsible Officials of the Auditee
The Board agreed with the finding.