Finding Text
Type: Federal Awards, Significant Deficiency CFDA 93.600 Agency: Department of Health and Human Services Criteria: There should be documented support and review of system allocations by an appropriate member of management other than the preparer prior to posting in the accounting system. Condition: There was inconsistent documentation of allocation rates for invoices charged to the grant. Allocations other than the rates determined by management were used on five out of forty nonpayroll expenses. There were fewer exceptions noted this year than in the prior year. Cause: The Organization?s control policies for review of allocation rates used were not consistently followed. Effect: Invoice allocations may be charged inaccurately to awards and incorrect amounts could be billed. Questioned Costs: None. Recommendation: System allocations should be reviewed regularly by an appropriate member of management and invoice allocations should be consistent with the approved allocations.