Finding 8370 (2022-005)

Criteria: In accordance with 2 CFR 200.403(g), costs must be adequately documented in order to be allowable under Federal awards. Condition: The School was unable to provide documentation for three (3) out of sixty (60) non-payroll expenses. Cause: The School failed to follow its own policies for documentation of expenses and document retention. Effect: The costs were not allowable under the Federal award because they were not adequately documented. Questioned costs: $2,412 Context: Three (3) out of sixty (60) non-payroll expenditures tested did not have original invoice or payment support. Recommendation: We recommend the School implement a document retention system whereby invoices and payment support are retained for the appropriate time period. Action Plan: The school has maintained receipts for these non-payroll expenditures but were not found within the audit timeline. Better organization of receipts will be implemented. The School will scan receipts and electronically store documents including invoices and payments together. The School will consider multiple platforms including server or a cloud document storage platform. Receipts will be maintained and reported in the appropriate period. Persons Responsible: Yvonne Bullock, CEO/Head of School Gulen Hicks, Consultant Administrative Assistant Consultant