Finding Text
2022-001 - Activities Allowed/Cost Principles
Federal Program Information:
ALN - 20.205 - Highway Planning and Construction Cluster
Criteria: The following CFR(s) apply to this finding: 2 CFR 200.303
Condition: During audit procedures, it was identified that the Town does not have a
consistent documented method over invoice and/or purchase order approval to ensure that
only allowable costs are being charged to the program.
Cause: The Town does not have the necessary internal controls over compliance.
Effect: The Town is at an increased risk for unallowable cost to be charged to the program.
Identification of Questioned Costs: None identified.
Context: The sample selection consisted of 9 out of 35 transactions. Out of the 9 samples,
9 did not have board approvals prior to payment or account numbers noted on invoices to
ensure that only allowable costs were being charged to the program. This is not a
statistically valid sample.
Repeat Finding: This is not a repeat finding.
Recommendation: It is recommended that the Town review and implement policies and
procedures for a consistent 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
the unabridged version of their response can be found in the Corrective Action Plan.
Please see the Corrective Action Plan issued by the Town of Brownington.