Finding Text
2022-003 Allowable Costs Principles for Disbursements ? Significant Deficiency Criteria: The Uniform Guidance sets forth certain Cost Principles outlined at 2 CFR Part 200, Subpart E for federal award recipients to implement the necessary internal controls and effective monitoring to ensure compliance. These principles require that the recipient provide for adequate documentation to support costs charged to the Federal award. Condition: Supporting documentation was missing for 3 out of 40 disbursements selected for allowable costs testing during the audit. Without itemized receipts we were unable to determine if the purchases were allowable. However, the projection of the error was less than the $25,000 reportable limit of questioned costs. Cause: The Organization?s controls did not provide for supporting documentation to be adequately retained. Recommendation: We recommend that internal control procedures on recordkeeping and filing should be clearly stated as part of the Organization policy. Views of responsible officials: We acknowledge that three receipts, with a total value under $200, were not able to be located during the audit process. Corrective action has been taken to enhance the way receipts are captured, as well as to diminish the use of the company credit card for purchases. Beginning March 2023, we deployed Expensify, an enterprise level application that tracks and automates the collection of expenses and receipts. The app runs from a smart phone where expenses will be immediately captured and then submitted to the accounting department via email (ap@morningstarcfs.org) for reconciliation. Additionally, our accounting staff has set up direct bill accounts and improved ordering processes, where possible, to lessen credit card use and the need for receipt collection.