Finding 396118 (2023-003)

Finding 2023‐003 – [Questioned Costs] (Significant Deficiency) Criteria: Internal Control procedures should be designed to ensure that only allowable costs are charged to the program. Condition: Audit test revealed that an unallowable cost in the amount of $20,500 was allocated to the program Context: Expense transactions were selected for testing and it was determined that vouchers were submitted based on a predetermined amount from the budget and the amount was not adjusted to reflect actual supply costs. Effect: Unallowable costs were charged to the program. Cause: Internal control over expenditures failed to identify and prevent unallowable costs from being charged to the program. Recommendation: Internal control procedures over expenditures should be reviewed and modified as necessary to ensure that unallowable costs are not charged to the program. Views of Responsible Official: While PRCC believe this was a legitimate cost, there was an uncommon problem due to the fact that these were charged on the company credit card instead of our normal procurement process. In the future we will make sure to use our normal procurement process.