Core Issue: Internal controls are not functioning properly, resulting in missing documentation for federal program charges.
Impacted Requirements: Supporting documentation for all charges must be maintained as per internal control guidelines.
Recommended Follow-Up: Monitor new staff training and adherence to internal controls to ensure proper record retention and filing procedures.
Finding Text
Internal controls not operating as designed led to missing
documentation to support charges made to federal programs
Criteria
Internal controls dictate that supporting documentation for all
charges be maintained
Condition
During audit testing it was noted that the Organization was unable
to located half of the invoices/credit card charges selected for
testing.
Cause
Changeover in staff disrupted record retention and filing
procedures.
Effect Potential for costs to be deemend unallowable.
Questioned costs
None - due to the fact that we had enough detail available to
determine that costs were allowable, or immaterial.
Recommendations
We are aware that staffing has been completely changed, and that
new staff have been adequately trained and are committed to
internal controls operating effectively.
Corrective Action Plan
New staff were put into place, the finding has been corrected
through training and procedure review. Allyson Kreder is responsible for accounting record keeping. The finding was corrected by the issuance date, September 20, 2024
Categories
Allowable Costs / Cost PrinciplesInternal Control / Segregation of Duties