Finding Text
Condition – Documentation to support the allowability of certain costs billed to the programs could not be located.
Criteria –Documentation should be maintained to support that costs charged to Federal awards were necessary and reasonable for the performance of the Federal award and allocable under the principles of 2 CFR part 200 (Uniform Guidance), Subpart E.
Cause –Turnover in the top accounting position, Director of Finance combined with a physical relocation resulting in a temporary inability to locate some documents.
Effect – We were unable to determine the allowability of certain costs.
Context – A sample of 50 transactions per program (50 payroll and 50 non-payroll) was the selected from a population of over 250 transactions. Documentation could not be provided for 23 non payroll transaction totaling $2,286.
Recommendation – We recommend that procedures be implemented to ensure that all documentation is maintained to provide reasonable assurance that the costs of goods and services charged to Federal awards are allowable and supported in accordance with the applicable requirements.
Views of Responsible Officials and Planned Corrective Actions – The leadership at IHR takes this finding very seriously and to ensure more accurate record keeping has hired additional support with the skills necessary for maintaining a more comprehensive and accessible electronic record keeping system. This will also be accomplished by enforcing IHR’s existing procedures of authorizing, scanning, and properly coding documents by Accounts Payable.