Finding Text
2022-003 - 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
invoices 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 documented approval of invoices and board warrants to ensure
that only allowable costs were being charged to the program and 2 out of 5 invoices
were paid over 30 days late.
Repeat Finding: This is a repeat finding of 2021-003
Recommendation: It is recommended that the Town 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.