Common Audit Findings Quick Guide

Common Audit Findings Quick Guide

Unfavorable audit findings can result in more frequent reporting and monitoring, repayment of funds, loss of continuation of multi-year award, and/or termination of an award.

Below, you will find the most common findings by the US Department of Education and the SPPS procedures designed to prevent these from ocurring. For a pdf of this information in table form, click here.

Failure to follow procurement standards

This finding can include:

• Inadequate documentation
• Missing receipts, purchase orders, invoices or canceled checks

Avoid this finding by following these SPPS processes:

Micro-purchase

P-Card

Purchase Req for Services

Purchase Req for Supplies and Equipment

Sole-Source or Noncompetitive Purchase

Voucher

Issues with compensation

This finding includes:

• Time and Effort charged at a higher rate than the worker’s regular salary, or in addition to employee's salary
• Time and Effort reports that are missing, incomplete or not timely

Avoid this finding by following this SPPS process:

Time and Effort

Lack of timely audits or failure to correct problems identified in audit reports

Avoid this finding by following these SPPS processes:

Audit

Grant Reporting

Lax inventory control

Avoid this finding by following these SPPS processes:

Equipment

Inventory and Reconciliation

Portable and Attractive Supplies

Property Control Tags

Transfer and Disposal

Poor cash management procedures

This finding includes:

• Excessive drawdowns
• Large available balance

Avoid this finding by following these SPPS processes:

Comparing Budget to Actual

Recording Revenue in Activity Tracker

Requesting and Receiving Federal Funds

Poor or inadequate internal controls

Avoid this finding by following these SPPS processes:

Food Purchase Regulations

Petty Cash

Preparing Deposit for Bank

Preventing Fraud, Waste and Abuse

Receiving Cash or Checks on Behalf of SPPS

Reporting Possible Fraud

Poor record-keeping

This finding includes:

• Records not in order or not retained supported adjustments

Avoid this finding by following this SPPS processes and practices:

Document Retention and Access

SPPS follows the accounting principles established by GASB

Using an incorrect indirect cost rate

Avoid this finding by following this SPPS process:

Developing a Budget

Using federal funds for unallowable costs and activities

Avoid this finding by following these SPPS processes:

Gift Cards

Reasonable, Allowable, Allocable Quick Guide

Violation of cost principles

Avoid this finding by following these SPPS processes:

Conflict of Interest

Employee Code of Conduct