Finding Text
Condition: Controls in place did not ensure maintenance of contractor invoices to support expenses reported for reimbursement on the monthly grant request. During our testing, two of the twelve monthly files tested did not contain contractor invoices that agreed to the amounts submitted to the grantor for reimbursement. These differences are eliminated by the end of the audit period, as total reimbursements received for contractor fees, did not exceed what was actually incurred and paid to contractor over the same audit period. However, the documentation provided was not adequate and did not support the amounts reported and requested on the monthly request for reimbursement.
Criteria: Effective controls over grants ensure allowable grant expenses are accurately captured and documented to support reimbursement requests and other reporting requirements. Internal worksheets and other documents prepared for reimbursement and other reporting should be reviewed for accuracy, prior to preparation and submission of the monthly reimbursement request.
Cause: LCHD lacked adequate procedures over the accuracy, and reporting of program related expenses. This was a result of errors in maintaining the correct supporting documentation for actual contractor fees invoiced and requested for reimbursement during the monthly reporting period.
Effect: The testing identified two monthly program reimbursement requests for contractor invoices, not in agreement invoices provided. The annual net effect was $-0-. If unallowable, costs could be required to be repaid to the grantor. Additional requirements may need to be fulfilled if grant funds were received prior to actual disbursement for the expense.
Recommendation: Management should continue to evaluate procedures for capturing, reporting, and maintaining support for reimbursements related to their various federal award programs. Adequate supporting documentation should clearly identify the reported expenses being reimbursed by the grantor, in order to ensure accurate information is reported. Procedures should include additional oversight and monitoring over original source data, financial statement reporting and monthly reporting to the grantor.
Grantee’s Response: Management concurs and will continue to evaluate procedures for capturing, reporting, and maintaining personnel, expense, and participant eligibility documentation, related to the various federal award programs, in order to ensure services are only provided to eligible individuals. Procedures should include additional oversight and monitoring over original source data, financial statement reporting and monthly reporting to the grantor.