Finding Text
2022-003 - Allowable Costs/Cost Principles ? Disbursements Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Allowable Costs/Cost Principles) Program. Child Nutrition Cluster; ALN 10.553, 10.555, and 10.559. Criteria. Uniform Guidance ?200.403 Factors Affecting Allowability of Costs section (f)(1) requires that costs charged to federal programs not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the current or a prior period. This principle assumes that costs also may not be charged more than once to a federal program (double counted) in order to be allowable. Additionally, Uniform Guidance ?200.400 Subpart E ? Cost Principles requires that costs charged to federal programs be consistent with the accounting policies and practices of the entity and provide for adequate documentation to support costs charged to the federal award. Costs charged twice to the same program cannot foundationally meet that standard of documentation. Condition. Of the 25 disbursement selections tested, the same invoice, in the amount of $1,944, was recorded twice. Cause. This condition was the result of a lack of internal controls in place subsequent to the entry of the expense into the general ledger. Effect. As a result of this condition, the District applied Child Nutrition Cluster funding to expenses that are unallowable under program guidelines. Questioned Costs. No costs were required to be questioned as a result of this finding. Recommendation. We recommend that the District review its procedures for approving disbursements to ensure that the same cost is not charged multiple times to the grant. View of Responsible Officials. The District will further utilize the electronic requisition system in the accounting software for purchases over $500. Furthermore, a monthly review of budget to actual results will be performed by department heads and any variances will be addressed. Responsible Official. LEA Business Manager