Finding Text
Significant Deficiency Assistance Listing # 84.287
Record keeping system
Condition: We noted the Organization had difficulty locating certain records, including employee salary authorization forms, timesheets, expenditure invoices and related approvals, that were requested as part of the audit process.
Criteria: Financial records, supporting documents, and all other non-Federal entity records must be retained properly and be readily available when requested to support allowable and allocable costs.
Cause: Certain records were not properly retained.
Effect: In certain instances throughout the audit process, complete and accurate records were not readily available. Missing invoices and approval could result in the payment of unsubstantiated expenses and potential misuse of the Organization’s resources. For payroll expenses, there is a possibility that the payments to the employees are inconsistent with the amounts specified in the employment agreements.
Recommendation: We would recommend the Organization strengthen their current recordkeeping system to ensure the appropriate records are available when they are needed. Instance of Non-Compliance: Allowability of Costs
Questioned cost: $0