Finding Text
U.S. Department of Health and Human Services - 93.432 Center for Independent Living
2024-007 Missing Supporting Documentation for Federal Reimbursement Claims
Criteria: Per 2 CFR §200.333 (now §200.334), financial records, supporting documents, statistical records, and all other records pertinent to a federal award must be retained for a period of three years from the date of submission of the final expenditure report. Furthermore, 2 CFR §200.302(b)(3) requires recipients to maintain records that adequately identify the source and application of funds for federally funded activities.
Condition: During our audit of the Centers for Independent Living funded by the U.S. Department of Health and Human Services, we noted that the League did not retain adequate supporting documentation for reimbursement claims submitted during the year. Specifically, for October - December 2023 reimbursement claims tested, the actual claim forms submitted to the funding agency were missing.
Cause: The missing documentation appears to have resulted from an inadequate document retention process and a lack of oversight in ensuring that federal claim records were properly filed and stored.
Effect: The absence of supporting documentation for submitted claims limits the League’s ability to demonstrate compliance with federal requirements and increases the risk of questioned costs. It also impairs transparency and accountability for federal funds.
Questioned Costs: $118,023 for October – December 2023 claims.
Recommendation: We recommend the League strengthen its grant management procedures by implementing a centralized tracking system for grant expenditures and claims. Staff responsible for managing grants should receive training on claiming procedures and grant deadlines, and a periodic review of unclaimed eligible expenditures should be performed to ensure timely reimbursement.
Views of Responsible Officials and Planned Corrective Actions: See corrective action plan on page 50.