Finding Text
Criteria The 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition The Town of Yoder, Wyoming did not have procedures to identify miscodings, inappropriate cost transfers, budget overages, segregation of duties concerns, and unauthorized payments. The Town of Yoder, Wyoming did not have procedures to review invoices, cost allocations, efforts of personnel, fringe benefits and indirect charges for allowability, adherence to cost principles, accuracy, and completeness. There was no evidence the reimbursement requests were reviewed and approved prior to submission. Cause The Town of Yoder, Wyoming does not have an internal control system designed to review account coding for expenditures and review and approval of reimbursement requests to the awarding agency. Effect or Potential Effect There is an increased risk of unallowable costs being charged to grants. Questioned Costs This finding does not result in questioned costs. Context This was identified through inquiry of management and review of all the invoices and supporting documentations. Recommendation We recommend the Town of Yoder, Wyoming implement a review process to ensure all expenditures are eligible expenditures and review, approval, and monitoring of reimbursement requests to awarding agency.