Finding 520575 (2022-002)

Recommendation – We recommend that management ensure that records are retained to support the validity of expenses charged to Federal programs. Views of responsible officials and planned corrective actions – Management agrees with the finding and in the future will take steps to retain or insure that access to records continues to be available in instances of system migrations. Criteria or specific requirement – Management is required to ensure that there are sufficient internal controls in place over expenses charged to the program. This includes internal controls that ensure that expenditures are verifiable with adequate supporting documentation. Conditions – Documentation for certain expenditures was not maintained to support the expenditure. Context – During our testing of allowable costs and activities, we sampled twentytwo non‐payroll expenditures totaling $13,043. The total population of nonpayroll expenditures charged to the program was $593,341. In our sample, we noted that three selections of expenditures totaling $758 did not have adequate supporting documentation on file. In the same sample, we also identified five expenditures totaling $6,406 which may be unallowable and is reported as a separate finding (see finding 2022‐003). Cause – Supporting documentation was not consistently maintained. Effect –Unallowable costs may have been charged to the program. Recommendation – We recommend that management ensure that supporting documentation for expenses charged to Federal programs be maintained to ensure future compliance with applicable federal cost rules.