Finding Text
Condition: The Organization’s accounting system records did not agree to the billing invoices to the pass-through entity. Criteria: Under 200.302, federal award recipients 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. Cause: The accounting system records included both billed and unbilled grant costs. The unbilled costs were not separately identified. Context: Allowable Federal awards expended during the fiscal year. Questioned Costs: $0. Recommendation: We recommend the Organization track the billed federal award expenses separately from the unbilled costs so that an audit trail exists of the grant award expense transactions. Views of Responsible Official and Planned Corrective Action: The Organization acknowledges that all accounting system records did not agree to the billing invoices and recognizes the importance of maintaining accurate and timely accounting records. The Organization notes that it was not found that any variances between system records and billing invoices resulted in questioned costs. The Organization will establish and follow detailed policies and procedures to thoroughly track and record all grant award expense transactions. Accounting records will be modified to include the recordation of unbilled costs under grants and contracts. Billings will be reconciled to the general ledger prior to the submission of invoices to third parties