Finding Text
Criteria or specific requirement: The Code of Federal Regulations 200.403 (g) states: In order for costs to be
allowable under Federal awards, the costs must be adequately documented and there must be sufficient documentation.
Context and Condition: During our testing of disbursements, we noted 1 of the 25 disbursements
sampled pertained to a monthly credit card disbursement with transactions
allocated to the Federal programs. Upon expanding testing pertaining to credit
card disbursements, we noted management was not able to provide a receipt
or invoice to support 4 of 68 credit card transactions allocated to the Federal
programs within the monthly credit card disbursements tested.
Questioned Costs: None noted
Cause and Effect: Food Program personnel did not adhere to the Organization's policies and
procedures for ensuring sufficient documentation for credit card transactions
are retained and remitted to the accounting department on a monthly basis.
Failure to maintain proper documentation for all costs allocated to the Federal
award is noncompliance with Federal regulations.
Recommendation: We recommend the Organization's management review the internal control
policies and procedures surrounding credit card transactions and requirements
for compliance with Federal regulations. In addition, we recommend the
Organization's management implement policies and procedures to ensure
compliance with Federal regulations.