Finding Text
#2024‐001 – Significant Deficiency – Supporting Documentation
Opioid STR Grant ALN 93.788
Criteria
The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states
uniform administrative requirements, cost principles, and audit requirements for federal awards.
CFR 200.302(b)(3) states, “The recipient’s financial management system must maintain records that sufficiently
identify the amount, source, and expenditure of Federal funds for Federal awards. These records must contain
information necessary to identify Federal awards, authorizations, financial obligations, unobligated balances, as
well as assets, expenditures, income, and interest. All records must be supported by source documentation.”
Condition
During the course of the audit, we noted there was no approved source documentation for a recurring expense
tested.
Cause
The Organization has made a reasonable effort to design proper controls, but has faced challenges in
implementing them effectively, due to growth across multiple locations and frequent turnover.
Effect
The potential effects of not having supporting documentation on file could include over or undercharging
expenses to the federal grants.
Questioned Costs
None
Perspective Information
The finding noted related to one (1) transaction examined when testing a sample of forty (40) non‐payroll cash
disbursements. The transaction was a recurring monthly charge that was supported by an agreement approved
by an employee who has since left the Organization. The Organization was unable to locate a copy of the signed
agreement.
Identification as a repeat finding
There was no similar finding in the prior year.
Recommendation
We recommend having supporting documentation on file for all expenses charged to the Federal grants that
shows approval of the expense from an appropriate member of management.
View of Responsible Official
The CEO has implemented a policy that all signed documents and contracts will be uniformly kept in a
corresponding file, and the files will be stored in a locked filing cabinet at the corporate office. The Director of
Operations will be responsible to ensure that the documents and contracts are filed in a timely fashion.