Finding Text
Conditions: Internal controls over accounting records failed to prevent unallowed expenditures of federal funds and failed to prevent incorrect grant reporting. Criteria: Internal controls over grant accounting should identify disallowed costs and provide for timely and accurate reporting Cause: The accounting system and records did not specify how program costs were allocated and did not provide adequate documentary support for costs. Effect: This internal control deficiency could cause the entity to misspend program funds and besubject to repayment, penalty, or exclusion from future grant programs. Recommendations: The entity should evaluate and redesign internal controls to ensure accurate records arekept and reports are filed timely.The entity should also make sure all personnel involved in grant programs are trained inall relevant compliance requirements and have access to all the needed the tools andinformation to do their jobs.