Finding Text
Compliance Requirement - Allowable Costs/Cost Principles
Criteria - Management is responsible for establishing and maintaining effective internal control over federal awards to provide reasonable assurance that the non-federal entity is managing the federal award in accordance with federal statues, regulations, and terms and conditions of the awards received.
Condition - During the audit, we noted failure to document approval of purchases prior to disbursement of federal funds.
Cause - The conditions mentioned above were due to failure by the School to comply with established internal control policies over the allowable use of federal funds.
Effect - Without appropriate and effective internal controls over compliance, non-compliance could occur which the entity may not identify.
Recommendation - We recommend that the School review its internal control policies to properly document approval of purchases prior to disbursement of federal funds.
Management response - See corrective action plan provided by the CEO.