Finding Text
2021-003 - Allowable Costs/Cost Principles
Federal Program Information:
ALN - 10.760 - Water and Waste Disposal Systems For Rural Communities
Criteria: The following CFR(s) apply to this finding: 2 CRF 200.303
Condition: During audit procedures, it was identified that the Town does not have
invoice’s and board warrants approved before issuing checks.
Cause: The Town does not have the necessary internal controls over compliance.
Effect: Expenses may not be properly allocated to the grant; this could result in
unallowable expenses being charged and subsequently improperly reimbursed by
federal funds
Identification of Questioned Costs: None identified.
Context: The sample selection consisted of 5 out of 9 transactions. Of the 5 samples, 5
did not have consistent document approval of invoices and board approvals to ensure
that only allowable costs were being charged to the program and 3 out of 5 invoices
were paid over 30 days late.
Repeat Finding: This is not a repeat finding.
Recommendation: It is recommended that the Unit develop and implement policies and
procedures for documented approval process to ensure that only allowable costs are
charged to the program.
Views of Responsible Officials and Corrective Action Plan: Client agrees with finding,
and a version of their response can be found in the Corrective Action Plan. Please see
the Corrective Action Plan issued by the Town of Livermore Falls.