Finding Text
Finding number: 2023-012
Federal agency: U.S. Department of Treasury
Programs: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds
Assistance listing #: 21.027
Award year: 2023
Compliance requirement: Allowable Costs
Criteria
According to 2 CFR 200.403 Factors affecting allowability of costs:
Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards:
(a) Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles.
(c) Be consistent with policies and procedures that apply uniformly to both federally-financed and other activities of the non-Federal entity.
(g) Be adequately documented. See also §§ 200.300 through 200.309 of this part.
(h) Cost must be incurred during the approved budget period. The Federal awarding agency is authorized, at its discretion, to waive prior written approvals to carry forward unobligated balances to subsequent budget periods pursuant to § 200.308(e)(3).
Condition
The Federal Government requires that costs must be adequately documented and must be incurred during the approved budget period. During our testing, we noted the College failed to provide a copy of check or ACH payment information for 1 expenditure, out of a sample of 5. As a result, the College was unable to provide the proof of payment to support the expenditure is an allowable cost. Our sample was not, and was not intended to be, statistically valid.
Cause
The College failed to have the proper internal controls in place to keep the proof of payment to support the expenditure that was reimbursed from the federal award.
Effect
The invoice that was reimbursed from the federal award may not be an allowable cost.
Questioned Costs
$1,655
Identification as a Repeat Finding, if applicable
Not applicable.
Recommendation
The College should implement internal control procedures to verify that reimbursement requests are only submitted for invoices that have been paid.
View of Responsible Officials
The College agrees with the finding.