Finding Text
Criteria: CFR 200.403 states “Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: (g) Be adequately documented.”
Condition: In testing, the Agency was not able to provide support for 2 of 80 expenditure transactions reviewed.
Cause: The Agency has not implemented procedures, to the degree necessary, to ensure that support/source documentation is maintained and readily available for grant expenses.
Effect: Expenses are not properly supported with documentation. The Agency was not able to provide support for 2 of 80 expenditure transactions reviewed.
Questioned Costs: N/A
Recommendation: We recommend that the Agency update record retention controls to improve retention processes.
Views of Responsible Officials: Management agrees with this finding and their response is
included in this corrective action plan.