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.
Corrective Action Plan
Finding # 2022-005 Significant deficiency/immaterial noncompliance over federal awards U.S. Department of the Treasury 21.019 Coronavirus Relief Fund 21.027 Coronavirus State and Local Relief Funds Finding: Amounts charged to the contract were unallowable. Recommendation: Procedures should be implemented to provide oversight of contract billings and accounting records to ensure activity is charged and recorded according to contract requirements. Corrective Action: We will provide additional training to staff on proper expense charges as well as review invoices to ensure all expenses are allowable before requesting reimbursement. Anticipated Completion Date December 31, 2023
Categories
Questioned CostsAllowable Costs / Cost PrinciplesCash ManagementSignificant DeficiencyInternal Control / Segregation of Duties