Finding Text
2023-005 - Allowable Costs/Cost Principles
Federal Program Information:
ALN - 66.458 - Clean Water State Revolving Funds
Criteria: The following CFR(s) apply to this finding: 2 CRF 200.303
Condition: During audit procedures, it was identified that the Town does not have
invoices and board warrants approved before issuing checks.
Cause: The Town does not have the necessary internal controls over compliance. Lack
of supervisory oversight.
Effect: Expenses may not be properly allocated to the grant; this could result in
unallowable expenses being charged and subsequently improperly reimbursed by
federal funds
Identification of Questioned Costs: None identified.
Context: The population consisted of 12 out of 38 transactions. Of the 12 samples, 4
did not have consistent document approvals from the Town Manager to ensure that only
allowable costs were being charged to the program and 7 out of 12 were lacking Select
Board approvals.
Repeat Finding: This is a repeat finding of 2022-006.
Recommendation: It is recommended that the Town develop and implement policies
and procedures for documented approval process to ensure that only allowable costs
are charged to the program.
Views of Responsible Officials and Corrective Action Plan: Client agrees with finding
and a version of their response can be found in the Corrective Action Plan. Please see
the Corrective Action Plan issued by the Town of Livermore Falls.