Finding Text
Criteria
Internal controls should be in place that provide reasonable assurance that expenditure transactions are adequately documented.
Condition
Our testing identified a lack of documentation for non-payroll transactions as follows:
• One transaction for $20 out of 24 tested for a total value of $129,117 lacked support for the transaction.
• Two transactions totaling $5,353 out of 24 tested for a total value of $129,117 lacked support for the allocation to the grant charged.
Population of Items Tested
Twenty-four non-payroll transactions charged to the major federal program grants for a total of $129,117 were tested. Three transactions were found to have errors.
Cause of Condition
The cause of the condition is unknown.
Effects of Condition
Charges made to federal grants are not adequately supported and may be disallowed.
Auditor’s Recommendations
Procedures should be implemented to ensure that expenditure transactions are adequately documented and appropriately allocated.