Finding Text
2022-002 Allowable Costs/Cost PrinciplesCriteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) provides that amounts charged to the federal programs must be for allowable costs. To be allowable under federal awards, costs must be adequately documented and supported.Condition: The Organization does not have an internal control structure to properly differentiate between WIOA and non-WIOA expenditures in the general ledger.Context: A sample of 40 disbursements in the general ledger revealed that compliance for allowable costs/cost principles had been followed, however, within the general ledger there was no identification of how the specific federal expenditures were coded.Effect: The Organization could incorrectly report federal expenditures on the Schedule of Expenditures of Federal Awards.Cause: The Organization did not have adequate internal controls to ensure federal grants were properly identified within the general ledger system.Questioned Costs: None reported.Recommendation: We recommend the Organization enhance internal controls over grant coding and identification within the general ledger system to more easily and accurately reconcile required grant financial reports to the general ledger system.Response: We concur with this finding. As of July 1, 2022, North Central Missouri College was selected as the Grant Recipient/Fiscal Agent for the Northeast Workforce Development Board?s grant funds. Internal controls are in place to ensure federal grants are properly identified between WIOA and non-WIOA expenditures within the general ledger.