Finding Text
Condition: Finding Costs Charged to the Federal Program Not Supported by Sufficient Documentation (Material Weakness – Allowable Costs) Information on the Federal Programs: Child Nutrition Cluster: 10.553, 10.555, 10.559 Questioned Costs $33,572 During testing over allowable costs, it was noted that 20 out of 40 transactions of costs charged to the federal program were not supported by documentation as required by the Uniform Guidance (2 CFR 200, Subparts D Post Federal Award Requirements and E Cost Principles). Criteria: Uniform Guidance 2 CFR 200, Subparts D Post Federal Award Requirements and E Cost Principles. Per 2 CFR §200.334 Retention Requirements for Records, supporting documentation must be retained for a period of three years. Cause: Documentation was not maintained for costs charged to the federal program to support that expenditures were allowable per 2 CFR 200 Subpart E Cost Principles. Effect: Potential effects include unallowed costs being charged to federal programs resulting in possible reduction in funding. Isolated Instance or Systemic Problem: We consider this to be a systemic problem. Repeat of Prior Year Finding: No. Recommendation: We recommend that the School Department implement a system of controls including policies and procedures on maintaining documentation for costs charged to federal award programs where supporting documentation is accessible by management or other responsible individuals.