Finding Text
Finding Reference: 2022-001 Internal Control Documentation: Activities Allowed or Unallowed and Allowable Costs and Cost Principles (Significant Deficiency) Criteria: Pursuant to 2 CFR 200.303, Uniform Guidance requires that non-Federal entities receiving Federal Awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations and program compliance requirements. The documented review of supporting documentation of allowable activities and costs provide evidence that controls are operating as designed. Condition: Catholic Charities was unable to provide evidence of review and approval of the salary expense, including allocation to the respective grant agreement, for certain transactions recorded during fiscal year 2022. Context: While there was no noted noncompliance with the types of services and costs allowed or disallowed requirements and management indicated that the reviews had taken place, there was no documented evidence of the review. Cause: Procedures related to internal controls over types of services and costs allowed or disallowed did not provide evidence to demonstrate that the internal controls were performed as designed to ensure compliance with the requirements. Effect: Without evidence of the performance of the internal controls, Catholic Charities is unable to demonstrate that its internal controls are operating effectively to ensure compliance with laws, regulations and program compliance requirements. Recommendation: Management should prepare and retain documentation demonstrating review and approval consistent with Catholic Charities? policies. Views of Responsible Officials and Planned Corrective Action: Management refers the reader to the separately provided Corrective Action Plan for its remediation.