Finding Text
2022-004 Material Weakness in Internal Control over Financial Reporting and Noncompliance –
Allowable Costs/Cost Principles - Repeat
Criteria: Title 2 U.S. Code Part 200.403(g) requires that for costs charged to a
federal program to be allowable, they must be adequately documented.
Condition: A non-payroll cost charged to the federal major program was not
documented in accordance with the Mission’s financial policies and
procedures.
Cause: The Mission does not have a procedure in place to monitor all
supporting documents are properly secured and documented making it
available for retrieval.
Effect or potential effect: Not following established financial policies and procedures increases
the risk that internal control failures, questioned costs and
noncompliance could arise in the future over federal programs. Recommendation: We recommend the Mission reviews its financial policies and
procedures and implement and/or revise accordingly to ensure they
conform to both Uniform Guidance and internal policies and
procedures to satisfy adequate internal control design to account for
proper segregation of duties, records retention, and audit trail.
Views of Responsible
Officials:
See Corrective Action Plan
Identification of repeat
finding:
2021-004 See Finding 2022-004 above - Repeat
Identification of federal
program:
64.033 VA Support Services for Veteran Families Program
Award 20-AK-152
Department of Veterans Affairs
Questioned Costs: Known $0 Likely $0
Context: During our sampling testing for allowable costs, we identified the
following:
- 1 out of 65 transactions that did not have an audit trail of
approval process for payments to vendors in the form of a
purchase order form signed by the Executive Director or
Office Manager as required by the Missions financial policies
and procedures.
Identification of Repeat
Finding:
2021-005