Finding Text
Criteria or specific requirement – Management is required to ensure that cost
charged to the program are allowable costs. This include having internal controls
that ensure that all costs are allowable costs.
Conditions – Unallowable costs may have been charged to the program.
Context – During our testing of allowable costs and activities, we noted that the
Organization charged mileage and YUSA fair share expenses to the program.
Sampled unallowable costs related to mileage was $5,339 and YUSA fair share
was $1,067. Through further audit procedures we determined that total costs
related to the charged program for mileage and YUSA fair share was $26,956 and
$41,019, respectively.
Cause – Existing procedures surrounding the allowable costs of non‐payroll costs
were not followed.
Effect – Mileage and YUSA fair share was charged to the program which may be
unallowable costs.
Recommendation – We recommend that management ensure that non‐payroll
costs charged to the program are allowable costs to ensure future compliance
with applicable federal cost rules.