Finding Text
Finding 2023‐002: Allowable costs – Material weakness in internal control over compliance.
21.027: Coronavirus State and Local Fiscal Recovery Funds
Criteria: Section 200 of the Code of Federal Regulations requires recipients to implement robust
internal controls to ensure compliance with cost principles for all transactions charged to the
grant.
Condition: During allowable cost testing for federal grants, 6 out of the 24 invoices tested did
not have documented approval from management.
Cause: The Organization did not have a standard procedure in place to document
management’s approval for credit card transactions prior to payment. Effect: The Organization’s reporting of allowable cost is not fully documented in accordance
with internal control procedures over compliance.
Questioned Costs: None
Recommendation: Management should implement controls related to documentation of
approval for all credit card transactions prior to payment.
Management’s Response: See corrective action plan.