Finding Text
U.S. DEPARTMENT OF TREASURY:
2024-009 Compliance with Allowable Costs
Fiscal year finding initially occurred: 2024
Coronavirus State and Local Fiscal Recovery Funds (21.027)
Criteria
In accordance with the Uniform Guidance, the Government is required to have internal controls in place that are properly designed, implemented and operating effectively to ensure compliance with the requirements as they relate to allowable costs.
Condition
The Government’s internal controls over allowable costs over this major federal program did not allow for the identification of invoices that lacked sufficient evidence to determine the allowability of the cost charged.
Cause
The Government did not adhere to their established controls over allowable costs.
Effect
A sample of 29 transactions totaling $6,758,318 was selected for testing. A disbursement transaction with multiple invoices lacked sufficient evidence for certain travel related charges to determine the allowability of the costs. As a result, the Government had questioned costs totaling $1,792. Our sample was a non-statistical sample.
Recommendation
The Government should review their established controls, policies and procedures for effectiveness and ensure invoices submitted by the vendor include detailed support for all expenses incurred. Additionally, management should ensure all costs charged to the program are allowable under the grant guidelines.
Views of Responsible Officials and Planned Corrective Action
The Government agrees with this finding. While the actual cost itself is allowable, we acknowledge that the supporting documentation for the transaction was not present at the time of payment. We have discussed the invoice and documentation issues with the vendor, who will modify the invoices to comply in future billing periods. We have also discussed the lack of documentation and corrective action with staff in charge of reviewing and approving these invoices for payment. We do not expect this finding to reoccur.