Finding Text
Criteria: 2 CFR 200.405 maintains that costs which are allocable to more than one program be allocated based
on the proportional benefit or as determined on any reasonable documented basis. Condition: During our testing, 4 of the 8 expenses selected were unsupported by general ledger allocation of the expenses. The amount charged to the grant appeared to be an allocable percentage based on the budgeted amount however, the actual expenses that were incurred were not allocated out to the program in alignment with that budgeted amount. Cause: Due to turnover in program management adequate allocation of these expenses were not reconciled. Effect:The Organization must be able to demonstrate the expenses allocated to the grant on the vouchers is supported in its allocation in the general ledger to ensure proper allocation and avoidance of duplication of funding requests for the same amounts. Questioned Costs: The total of the allocated epxense transactions of $1,667 were not allocated in the general ledger system to the applicable program. Recommendation: We recommend that the Organization implement procedures and internal controls for regular review of the general ledger of their programs and reconcile to the vouchers prior to submission to the granting agency. Management's Response: We agree with this finding. See corrective action plan.