Finding Text
Criteria: 2 CFR, Part 200, §200.303, requires an auditee to establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition: Reimbursement was requested for the salary and benefits of one employee following her termination.
Questioned costs: $3,282
Context: One out of forty items selected for testing of allowable costs did not have supporting documentation.
Cause: The Organization did not have an adequate system to verify employee status before requesting reimbursement for payroll expenses.
Effect: Requesting reimbursement for expenses that were not incurred.
Repeat Finding: No
Recommendation: We recommend the Organization review their policies and procedures to ensure reimbursement requests are properly supported before submission.
Views of Responsible Officials: There is no disagreement with the audit finding.