Finding Text
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 expenditures charged to the Child Care and Development Block Grant program.
Context – During our testing of allowable costs and activities, we sampled thirteen non-payroll expenditures totaling $20,257. The total population of non-payroll expenditures charged to the program was $422,829. In our sample, we found that two selections of expenditures totaling $1,373 did not have adequate supporting documentation on file. In the same sample, we also identified one expenditure totaling $2,345 which may be unallowable and is reported as a separate finding (see finding 2023-003).
Cause – Supporting documentation was not consistently maintained.
Effect – Unallowable costs may have been charged to the program.