Finding Text
Condition: In the monthly reimbursement requests, the supplies line item reflected budgeted amounts. In addition, the Organization’s reimbursement request process was not properly segregated. The same person performed the preparation and review functions. Criteria: For grants and cooperative agreements to non-Federal entities that are paid on a reimbursement basis, supporting documentation shows that the costs for which reimbursement was requested were paid prior to the date of the reimbursement request. Accounting functions should be properly segregated so that one employee is not performing every critical process. Cause: The Organization has not fully developed its reimbursement requests policies and procedures. Supplies were estimated in the requests because the actual receipts had not been received and recorded in its accounting system. Context: The Organization submitted 12 reimbursement requests to its pass-through entity. Questioned Cost: $1,950. Recommendation: We recommend the Organization include actual incurred expenses in its reimbursement requests. In addition, we recommend the Organization incorporate in its policies and procedures the proper segregation of duties so that the reimbursement request process is not limited to one employee. Views of Responsible Official and Planned Corrective Action: The Organization accepts and understands that detailed reimbursement policies and procedures should be fully developed and implemented, and actual expenditures should be billed. The Organization believes that the actual cost of supplies allocated to the project exceeded the questioned cost.