Finding Text
Internal Control over Allowable Costs
Criteria: Control procedures should be adequate to ensure charges to federal program are allowable.
Condition: During our testing, we found that in the Organization's process of attempting to reconcile unemployment insurance the grant was overcharged by $8,094.
Cause: The Organization's procedure to reconcile unemployment insurance did not sufficiently focus on the associated liability recorded.
Effect: Federal program was charged for unallowable cost.
Recommendation: We recommend that the Organization develops a more comprehensive process to ensure accounts are properly reconciled prior to preparing grant billings.