Finding Text
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the Organization is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.Condition: The Organization?s final expenditure listing identified as eligible and claimed under the Provider Relief Fund program lacked documentation of its review by a separate individual outside of the preparer. The support for two out of 60 expenditures tested differed in amounts from the amount on the tracking spreadsheet. Three of the 60 invoices did not include evidence of approval for payment.Cause: The Organization did not have an internal control process in place to ensure the review and approval of eligible expenditures that were summarized from the underlying supporting spreadsheets to the final expenditure listing was documented or that amounts reported were correct. The summary spreadsheet was used to claim allowable costs under the federal program.Effect: There is a possibility that ineligible expenditures may be claimed under the program.Questioned Costs: None reported.Context: Summary level testing was performed over certain payroll related expenditures. In addition, a nonstatistical sample of 60 transactions totaling $511,234 out of $1,115,520 were detail tested. Net amounts differed from the support by $10.Repeat Finding from Prior Years: NoRecommendation: We recommend the Organization implement a control process which includes maintaining documentation of the review and approval of the summarized final expenditure listing used to claim the allowable costs under the federal program.Views of Responsible Officials: Management agrees with the finding