Finding Text
2022-002 ALLOWABILITY Federal Program Information: Federal Agency and Program Name: National Endowment for the Humanities: Promotion of the Humanities-Federal/State Partnership Grant Number: SO-268683-20 Federal Assistance Listing Number: 45.129 Criteria: 2 CFR 200.303 requires that a non-federal entity must ?(a) 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. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States and the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 2 CFR 200.403(g) states costs must ?be adequately documented.? Condition: For three of the 40 transactions selected for testing, documentation could not be located to support approval or allowability of the expenditure. Questioned Costs: $5,876 Context: Total federal expenditures for the Promotion of the Humanities-Federal/State Partnership program were $830,848 for the year ended October 31, 2022. Cause: The Council did not retain adequate documentation of all expenditures charged to the federal program. Effect: The Council is not in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Expenditures were paid that may not be allowable. Recommendation: We recommend that the Council implement controls to ensure that expenditures are properly reviewed and approved before being charged to a federal award and that adequate supporting documentation is maintained. Views of Responsible Officials: Management acknowledges the finding. See corrective action plan.