Finding 556040 (2023-003)

Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Management was unable to reproduce a detailed listing of expenses incurred that agreed to the amounts submitted under the federal award for reimbursement. Cause: The original detailed listing of expenses incurred was not maintained by management due to turnover in certain administrative positions. Effect: Management reproduced a detailed listing of expenses incurred based on support available during audit that was $4,722 less than the amount submitted for under reimbursement under the federal award. This amount is below the questioned cost report threshold according to the Uniform Grant Guidance (2 CFR Part 200). Questioned Costs: None reported. Recommendation: We recommend that management review its policies and procedures over the documentation and retention of allowable expense claimed for federal award reimbursement. Views of Responsible Officials: Management agrees with the finding.