Core Issue: There were unallowed costs charged to federal awards, indicating a significant deficiency in financial controls.
Impacted Requirements: Expenses must be allowable under the contract, and 4 out of 80 tested expenses did not meet this requirement.
Recommended Follow-up: Implement oversight on contract billings and provide staff training to ensure compliance with expense requirements.
Finding Text
Finding #2022-005: Type: Significant deficiency over federal awards Type: Immaterial noncompliance Assistance Listing: 21.019 Coronavirus Relief Fund 21.027 Coronavirus State and Local Relief Funds Requirement: Amounts charged to the contract should be allowable under the contract. Condition/Context: Out of a sample of 80 selected for testing, 4 expenses had unallowed costs charged to the grant. Cause: The Organization did not have appropriate controls over allowable costs. Effect: Improper or inaccurate amounts could be paid or charged to contracts. Questioned Costs: $328 Recommendation: We recommend oversight of contract billings and accounting records to ensure activity is charged and recorded according to contract requirements. Management Response: Management will provide additional training to staff on proper expense charges. Management is reviewing invoices to ensure all expenses are allowable before requesting reimbursement.
Categories
Questioned CostsAllowable Costs / Cost PrinciplesCash ManagementSignificant DeficiencyInternal Control / Segregation of Duties