Finding Text
Condition: Cost allocations for non-payroll and related expenses allocated across program activities, including federal award programs, were not supported as being approved by the Program
Cause: Due to the transition of staff and accounting systems throughout the year, the Organization had inconsistent documentation of Program Director approval of expenditures charged to federal programs.
Context: For 59 of the 138 non payroll expenditures selected for testing across all programs, the Organization was unable to provide documentation of the review and approval by the Program Director.
Effect: Because the process for documenting program director approval of expenses not consistently followed, it is possible that unallowable costs or activities may be inappropriately allocated amongst functional activities, including federal award programs.
Recommendation: Procedures should be consistently applied requiring the documentation of Program Director approval of expenditures charged to federal and other programs. View of Responsible: The Organization agrees with the finding, see corrective action plan.