Finding Text
2022-003 Federal Program AL 93.569 Community Services Block Grant Compliance Requirement Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance Criteria Per Uniform Guidance 2 CFR section 200.403(h), a non-federal entity may charge only allowable costs incurred during the federal award?s period of performance or grant period. The ?Basic Guidelines? section of 2 CFR Part 200, Subpart E Section 200.403, requires charges to federal awards to be necessary and reasonable for the performance of the federal award and be allocable thereto under these principles. Costs must also be adequately documented. Condition The Organization did not have the invoice or other supporting documentation for a credit card transaction charged to this federal program. Therefore, was unable to determine period of performance for this expense or if this was an allowable cost or activity. An employee who left the Organization was paid a percentage of their sick leave bank that exceeded the Organization?s policy. This severance payment was charged to this federal program. Cause The Organization did not have sufficient procedures in place to ensure all supporting documentation for disbursements are obtained and to ensure the correct severance amount is paid based on the Organization?s policy. Effect The Organization charged this federal program for an expense with no supporting documentation and an employee overpayment. Context A sample of 46 transactions were selected for testing this federal program. The Organization did not have supporting documentation for one credit card transaction. The Organization has a severance policy that allows employees to be paid 10% of their sick leave bank balance when they leave the Organization. This employee was eligible for 96 hours of sick leave but was paid for 114 hours due to an error in the calculation. Questioned Costs Immaterial Repeat Finding No Recommendation The Organization should review their policies and procedures to ensure supporting documentation is obtained for all disbursements and employees are paid the correct amount based on the Organization?s policy. Views of Responsible Officials and Planned Corrective Actions Management agrees with the recommendation and will review their procedures to ensure all supporting documentation is obtained for disbursements and employees are paid the correct amount per policy.