Answer: Management failed to keep necessary documentation for wage and cost allocations.
Trend: This issue indicates a recurring lack of proper record-keeping in financial processes.
List: Follow up by ensuring documentation practices are improved and regularly reviewed.
Finding Text
During our audit for the year ended June 30, 2023, we found that management did not retain documentation to support its allocation of wages, salaries, f ringe benef its and other indirect costs.
Corrective Action Plan
The Alliance documented the ARPA designated hours per employee and made adjustments where needed to allocate money away f rom ARPA
funds when those were not reported. This process will be documented and all data and calculations supporting the allocations will be retained.