Finding 48757 (2022-001)

Finding 2022-001 Significant deficiency in internal controls over compliance related to allowable costs. Federal Agency: U.S. Department of Commerce Program Title: Manufacturing Extension Partnership Assistance Listing Number: 11.611 Award Numbers: 70NANB21H011 Award Period: September 1, 2020 to August 31, 2022 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards provides for specific items of cost which are considered to be unallowable. Condition/Context for Evaluation Impact Washington?s (the Organization?s) internal controls over allowable costs require unallowable costs incurred to be segregated and removed from being reported as federal award expenditures. Questioned Costs - $84 Cause The Organization?s operation of internal controls were not sufficient to ensure no unallowable costs were charged to the grant. Effect or Potential Effect Based on exceptions noted in the operation of internal controls, there could exist unallowable costs that were charged to the Federal Award. Repeat Finding This is not a repeat finding. Recommendation We recommend that the Organization ensure current internal controls are communicated to staff charging expenses to federal awards and consider the need for further strengthening internal controls over allowable costs. Views of Responsible Officials of Auditee Management concurs with the finding and has provided the accompanying corrective action plan.