Finding Text
In accordance with 2 CFR 200.405, costs must be allocated to the projects based on the proportional benefit. If this cannot be determined, costs may be allocated or transferred to benefitted projects on any reasonable documented basis. For the year ended December 31, 2023, AEA did not maintain support for their allocation methodology for 14 cash disbursement items selected. Allocations were made based on predetermined percentages established by the prior Chief Financial Officer. The expense allocations may not be appropriate. AEA is not in compliance with 2 CFR 200.405. There are no questioned costs reported. A random sampling of the federal expenditures. This is not a repeat finding from the prior year.We recommend that AEA review and reestablish their allocation methodology for allocated costs.