Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020‐2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award.
Additionally, regulations require that in order for activities and costs to be allowed under Federal
awards, 45CFR, part 75 all costs must be adequately documented.
Condition: The Organization lacked supporting documentation for non‐payroll expenses. Due to lack
of supporting documentation and evidence of approval for payment could not be verified. Of the sixty
(60) transactions examined, fourteen (14) lacked supporting documentation for review, and approval
for payment by a Manager.
Effect: Management possibly did not expend funds in accordance with the approved detailed lineitem
budget and grant agreement and possibly expended funds which did not contribute to the
objective set forth for the program. (lack of approved invoices, lack of supporting documentation).
Cause: Expenses including approved invoices and/or supporting documentation were not properly
maintained in part due to several changes in personnel within the accounting area and overall limited
number of personnel for certain functions and lack of board oversight.
Questioned Costs: Known questioned costs of $2,066 and likely questioned costs of $11,507 for
Healthy Start.
Recommendation: We recommend that internal controls be strengthened and processes
implemented to ensure all expenses include supporting documentation/invoice indicating nature of
expense, amount, authorization and approval for payment.
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020‐2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award. Additionally, under
2 CFR sections 200.308 200.309 and 200.403(h)), the Organization may charge only allowable costs
incurred during the approved budget period of a federal award’s period of performance and any costs
incurred before the federal awarding agency or pass‐through entity made the federal award that
were authorized by the federal awarding agency or pass‐through entity.
Condition: The Organization lacked supporting documentation for non‐payroll expenses. Due to lack
of supporting documentation, period of performance could not be verified. Of the sixty (60) nonpayroll
transactions examined, fourteen (14) lacked supporting documentation for review.
Effect: Management possibly did not expend funds in accordance with the approved detailed lineitem
budget and grant agreement and possibly expended funds in the incorrect period of
performance.
Cause: Expenses including approved invoices and/or supporting documentation were not properly
maintained in part due to several changes in personnel within the accounting area and overall limited
number of personnel for certain functions and lack of board oversight.
Questioned costs: Known questioned costs of $2,066 and likely questioned costs of $11,507 for
Healthy Start.
Recommendation: We recommend that internal controls be strengthened and processes
implemented to ensure all expenses include supporting documentation/invoice indicating period of
performance.
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020‐2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award.
Additionally regulations require the reimbursement payment method may be used on a Federal
award for activities as specified in 2 CFR section 200.305(b)(3), program costs must be paid by non‐
Federal entity funds before submitting a payment request (2 CFR section 200.305(b)(3)), i.e., the non‐
Federal entity must disburse funds for program purposes before requesting payment from the
Federal awarding agency or pass‐through entity.
Condition: The Organization has a policy which in includes thee Fiscal/Grant Manager and/or the CEO
review all drawdown requests to ensure costs are paid before reimbursement is requested. However
of the sixteen (16) drawdown requests that we tested, there was no evidence of review and approval
for payment.
Effect: Management possibly did not expend funds in accordance with the federal award due to lack
of evidence of oversight/review of drawdowns and after reimbursable expenses have been incurred.
Cause: Management did not document evidence of review and approval of drawdown requests. This
was due in part to lack of oversight. Also there were several changes in personnel within the
accounting area and overall limited number of personnel for certain functions and lack of board
oversight.
Questioned costs: None
Recommendation: We recommend that internal controls be strengthened and processes
implemented to ensure all draw down requests are reviewed and approved to ensure costs were
accurately reported and paid before requesting reimbursement.
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020‐2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award. Additionally, under
2 CFR Section 200.320, the Organization must have and use documented procurement procedures
for acquisition of property and services under a federal award or a sub‐award.
Condition: The Organization does have approved policies and procedures over procurement that
meet the requirements of the Uniform Guidance. However the Organization is not following its
prescribed policies and procedures. The Organization lacked supporting documentation verifying
procurement policies and procedures were followed. Due to lack of supporting documentation,
procurement could not be verified. Of the sixty (60) transactions examined, fourteen (14) lacked
supporting documentation for review of procurement.
Effect: Not following procurement policies and procedures may result in funds to be returned back
to grantor and/or impact future funding.
Cause: Supporting procurement documentation for acquisition of property and services were not
properly maintained in part due to several changes in personnel within the accounting area and
overall limited number of personnel for certain functions and lack of board oversight.
Questioned Costs: Known questioned costs of $2,066 and likely questioned costs of $11,507 for
Healthy Start.
Recommendation: We recommend the Organization strengthen its policies and procedures to ensure
procurement is adequately documented for that goods and services purchased in accordance with
Uniform Guidance and other federal guidelines.
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020‐2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award. Under 2 CFR part
180, the Organization is required to verify suspension or debarment from the excluded parties list
system regarding compliance.
Condition: Under 2 CFR part 180, the Organization is required to verify suspension or debarment from
the excluded parties list system regarding compliance. Though the Organization did not have a policy
for suspension and debarment, the Organization complied with the requirements.
Effect: Not having a suspension and debarment policy may result in funds to be returned back to
grantor and/or impact future funding.
Cause: Supporting suspension and debarment documentation for acquisition of property and services
were not properly established in part due to several changes in personnel within the accounting area
and overall limited number of personnel for certain functions and lack of board oversight.
Questioned Costs: None
Recommendation: We recommend the Organization strengthen its policies and procedures to ensure
procurement and suspension and debarment is adequately documented for that goods and services
purchased in accordance with Uniform Guidance and other federal guidelines. In addition, the
Organization should verify that all vendors under covered transactions are not listed on the excluded
parties list system by performing a search on sam.gov and maintaining the results of such search in
the vendor’s file.
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020‐2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award.
Additionally, regulations require that in order for activities and costs to be allowed under Federal
awards, 45CFR, part 75 all costs must be adequately documented.
Condition: The Organization lacked supporting documentation for non‐payroll expenses. Due to lack
of supporting documentation and evidence of approval for payment could not be verified. Of the sixty
(60) transactions examined, fourteen (14) lacked supporting documentation for review, and approval
for payment by a Manager.
Effect: Management possibly did not expend funds in accordance with the approved detailed lineitem
budget and grant agreement and possibly expended funds which did not contribute to the
objective set forth for the program. (lack of approved invoices, lack of supporting documentation).
Cause: Expenses including approved invoices and/or supporting documentation were not properly
maintained in part due to several changes in personnel within the accounting area and overall limited
number of personnel for certain functions and lack of board oversight.
Questioned Costs: Known questioned costs of $2,066 and likely questioned costs of $11,507 for
Healthy Start.
Recommendation: We recommend that internal controls be strengthened and processes
implemented to ensure all expenses include supporting documentation/invoice indicating nature of
expense, amount, authorization and approval for payment.
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020‐2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award. Additionally, under
2 CFR sections 200.308 200.309 and 200.403(h)), the Organization may charge only allowable costs
incurred during the approved budget period of a federal award’s period of performance and any costs
incurred before the federal awarding agency or pass‐through entity made the federal award that
were authorized by the federal awarding agency or pass‐through entity.
Condition: The Organization lacked supporting documentation for non‐payroll expenses. Due to lack
of supporting documentation, period of performance could not be verified. Of the sixty (60) nonpayroll
transactions examined, fourteen (14) lacked supporting documentation for review.
Effect: Management possibly did not expend funds in accordance with the approved detailed lineitem
budget and grant agreement and possibly expended funds in the incorrect period of
performance.
Cause: Expenses including approved invoices and/or supporting documentation were not properly
maintained in part due to several changes in personnel within the accounting area and overall limited
number of personnel for certain functions and lack of board oversight.
Questioned costs: Known questioned costs of $2,066 and likely questioned costs of $11,507 for
Healthy Start.
Recommendation: We recommend that internal controls be strengthened and processes
implemented to ensure all expenses include supporting documentation/invoice indicating period of
performance.
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020‐2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award.
Additionally regulations require the reimbursement payment method may be used on a Federal
award for activities as specified in 2 CFR section 200.305(b)(3), program costs must be paid by non‐
Federal entity funds before submitting a payment request (2 CFR section 200.305(b)(3)), i.e., the non‐
Federal entity must disburse funds for program purposes before requesting payment from the
Federal awarding agency or pass‐through entity.
Condition: The Organization has a policy which in includes thee Fiscal/Grant Manager and/or the CEO
review all drawdown requests to ensure costs are paid before reimbursement is requested. However
of the sixteen (16) drawdown requests that we tested, there was no evidence of review and approval
for payment.
Effect: Management possibly did not expend funds in accordance with the federal award due to lack
of evidence of oversight/review of drawdowns and after reimbursable expenses have been incurred.
Cause: Management did not document evidence of review and approval of drawdown requests. This
was due in part to lack of oversight. Also there were several changes in personnel within the
accounting area and overall limited number of personnel for certain functions and lack of board
oversight.
Questioned costs: None
Recommendation: We recommend that internal controls be strengthened and processes
implemented to ensure all draw down requests are reviewed and approved to ensure costs were
accurately reported and paid before requesting reimbursement.
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020‐2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award. Additionally, under
2 CFR Section 200.320, the Organization must have and use documented procurement procedures
for acquisition of property and services under a federal award or a sub‐award.
Condition: The Organization does have approved policies and procedures over procurement that
meet the requirements of the Uniform Guidance. However the Organization is not following its
prescribed policies and procedures. The Organization lacked supporting documentation verifying
procurement policies and procedures were followed. Due to lack of supporting documentation,
procurement could not be verified. Of the sixty (60) transactions examined, fourteen (14) lacked
supporting documentation for review of procurement.
Effect: Not following procurement policies and procedures may result in funds to be returned back
to grantor and/or impact future funding.
Cause: Supporting procurement documentation for acquisition of property and services were not
properly maintained in part due to several changes in personnel within the accounting area and
overall limited number of personnel for certain functions and lack of board oversight.
Questioned Costs: Known questioned costs of $2,066 and likely questioned costs of $11,507 for
Healthy Start.
Recommendation: We recommend the Organization strengthen its policies and procedures to ensure
procurement is adequately documented for that goods and services purchased in accordance with
Uniform Guidance and other federal guidelines.
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020‐2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award. Under 2 CFR part
180, the Organization is required to verify suspension or debarment from the excluded parties list
system regarding compliance.
Condition: Under 2 CFR part 180, the Organization is required to verify suspension or debarment from
the excluded parties list system regarding compliance. Though the Organization did not have a policy
for suspension and debarment, the Organization complied with the requirements.
Effect: Not having a suspension and debarment policy may result in funds to be returned back to
grantor and/or impact future funding.
Cause: Supporting suspension and debarment documentation for acquisition of property and services
were not properly established in part due to several changes in personnel within the accounting area
and overall limited number of personnel for certain functions and lack of board oversight.
Questioned Costs: None
Recommendation: We recommend the Organization strengthen its policies and procedures to ensure
procurement and suspension and debarment is adequately documented for that goods and services
purchased in accordance with Uniform Guidance and other federal guidelines. In addition, the
Organization should verify that all vendors under covered transactions are not listed on the excluded
parties list system by performing a search on sam.gov and maintaining the results of such search in
the vendor’s file.
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020‐2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award.
Additionally, regulations require that in order for activities and costs to be allowed under Federal
awards, 45CFR, part 75 all costs must be adequately documented.
Condition: The Organization lacked supporting documentation for non‐payroll expenses. Due to lack
of supporting documentation and evidence of approval for payment could not be verified. Of the sixty
(60) transactions examined, fourteen (14) lacked supporting documentation for review, and approval
for payment by a Manager.
Effect: Management possibly did not expend funds in accordance with the approved detailed lineitem
budget and grant agreement and possibly expended funds which did not contribute to the
objective set forth for the program. (lack of approved invoices, lack of supporting documentation).
Cause: Expenses including approved invoices and/or supporting documentation were not properly
maintained in part due to several changes in personnel within the accounting area and overall limited
number of personnel for certain functions and lack of board oversight.
Questioned Costs: Known questioned costs of $2,066 and likely questioned costs of $11,507 for
Healthy Start.
Recommendation: We recommend that internal controls be strengthened and processes
implemented to ensure all expenses include supporting documentation/invoice indicating nature of
expense, amount, authorization and approval for payment.
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020‐2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award. Additionally, under
2 CFR sections 200.308 200.309 and 200.403(h)), the Organization may charge only allowable costs
incurred during the approved budget period of a federal award’s period of performance and any costs
incurred before the federal awarding agency or pass‐through entity made the federal award that
were authorized by the federal awarding agency or pass‐through entity.
Condition: The Organization lacked supporting documentation for non‐payroll expenses. Due to lack
of supporting documentation, period of performance could not be verified. Of the sixty (60) nonpayroll
transactions examined, fourteen (14) lacked supporting documentation for review.
Effect: Management possibly did not expend funds in accordance with the approved detailed lineitem
budget and grant agreement and possibly expended funds in the incorrect period of
performance.
Cause: Expenses including approved invoices and/or supporting documentation were not properly
maintained in part due to several changes in personnel within the accounting area and overall limited
number of personnel for certain functions and lack of board oversight.
Questioned costs: Known questioned costs of $2,066 and likely questioned costs of $11,507 for
Healthy Start.
Recommendation: We recommend that internal controls be strengthened and processes
implemented to ensure all expenses include supporting documentation/invoice indicating period of
performance.
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020‐2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award.
Additionally regulations require the reimbursement payment method may be used on a Federal
award for activities as specified in 2 CFR section 200.305(b)(3), program costs must be paid by non‐
Federal entity funds before submitting a payment request (2 CFR section 200.305(b)(3)), i.e., the non‐
Federal entity must disburse funds for program purposes before requesting payment from the
Federal awarding agency or pass‐through entity.
Condition: The Organization has a policy which in includes thee Fiscal/Grant Manager and/or the CEO
review all drawdown requests to ensure costs are paid before reimbursement is requested. However
of the sixteen (16) drawdown requests that we tested, there was no evidence of review and approval
for payment.
Effect: Management possibly did not expend funds in accordance with the federal award due to lack
of evidence of oversight/review of drawdowns and after reimbursable expenses have been incurred.
Cause: Management did not document evidence of review and approval of drawdown requests. This
was due in part to lack of oversight. Also there were several changes in personnel within the
accounting area and overall limited number of personnel for certain functions and lack of board
oversight.
Questioned costs: None
Recommendation: We recommend that internal controls be strengthened and processes
implemented to ensure all draw down requests are reviewed and approved to ensure costs were
accurately reported and paid before requesting reimbursement.
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020‐2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award. Additionally, under
2 CFR Section 200.320, the Organization must have and use documented procurement procedures
for acquisition of property and services under a federal award or a sub‐award.
Condition: The Organization does have approved policies and procedures over procurement that
meet the requirements of the Uniform Guidance. However the Organization is not following its
prescribed policies and procedures. The Organization lacked supporting documentation verifying
procurement policies and procedures were followed. Due to lack of supporting documentation,
procurement could not be verified. Of the sixty (60) transactions examined, fourteen (14) lacked
supporting documentation for review of procurement.
Effect: Not following procurement policies and procedures may result in funds to be returned back
to grantor and/or impact future funding.
Cause: Supporting procurement documentation for acquisition of property and services were not
properly maintained in part due to several changes in personnel within the accounting area and
overall limited number of personnel for certain functions and lack of board oversight.
Questioned Costs: Known questioned costs of $2,066 and likely questioned costs of $11,507 for
Healthy Start.
Recommendation: We recommend the Organization strengthen its policies and procedures to ensure
procurement is adequately documented for that goods and services purchased in accordance with
Uniform Guidance and other federal guidelines.
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020‐2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award. Under 2 CFR part
180, the Organization is required to verify suspension or debarment from the excluded parties list
system regarding compliance.
Condition: Under 2 CFR part 180, the Organization is required to verify suspension or debarment from
the excluded parties list system regarding compliance. Though the Organization did not have a policy
for suspension and debarment, the Organization complied with the requirements.
Effect: Not having a suspension and debarment policy may result in funds to be returned back to
grantor and/or impact future funding.
Cause: Supporting suspension and debarment documentation for acquisition of property and services
were not properly established in part due to several changes in personnel within the accounting area
and overall limited number of personnel for certain functions and lack of board oversight.
Questioned Costs: None
Recommendation: We recommend the Organization strengthen its policies and procedures to ensure
procurement and suspension and debarment is adequately documented for that goods and services
purchased in accordance with Uniform Guidance and other federal guidelines. In addition, the
Organization should verify that all vendors under covered transactions are not listed on the excluded
parties list system by performing a search on sam.gov and maintaining the results of such search in
the vendor’s file.
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020‐2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award.
Additionally, regulations require that in order for activities and costs to be allowed under Federal
awards, 45CFR, part 75 all costs must be adequately documented.
Condition: The Organization lacked supporting documentation for non‐payroll expenses. Due to lack
of supporting documentation and evidence of approval for payment could not be verified. Of the sixty
(60) transactions examined, fourteen (14) lacked supporting documentation for review, and approval
for payment by a Manager.
Effect: Management possibly did not expend funds in accordance with the approved detailed lineitem
budget and grant agreement and possibly expended funds which did not contribute to the
objective set forth for the program. (lack of approved invoices, lack of supporting documentation).
Cause: Expenses including approved invoices and/or supporting documentation were not properly
maintained in part due to several changes in personnel within the accounting area and overall limited
number of personnel for certain functions and lack of board oversight.
Questioned Costs: Known questioned costs of $2,066 and likely questioned costs of $11,507 for
Healthy Start.
Recommendation: We recommend that internal controls be strengthened and processes
implemented to ensure all expenses include supporting documentation/invoice indicating nature of
expense, amount, authorization and approval for payment.
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020‐2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award. Additionally, under
2 CFR sections 200.308 200.309 and 200.403(h)), the Organization may charge only allowable costs
incurred during the approved budget period of a federal award’s period of performance and any costs
incurred before the federal awarding agency or pass‐through entity made the federal award that
were authorized by the federal awarding agency or pass‐through entity.
Condition: The Organization lacked supporting documentation for non‐payroll expenses. Due to lack
of supporting documentation, period of performance could not be verified. Of the sixty (60) nonpayroll
transactions examined, fourteen (14) lacked supporting documentation for review.
Effect: Management possibly did not expend funds in accordance with the approved detailed lineitem
budget and grant agreement and possibly expended funds in the incorrect period of
performance.
Cause: Expenses including approved invoices and/or supporting documentation were not properly
maintained in part due to several changes in personnel within the accounting area and overall limited
number of personnel for certain functions and lack of board oversight.
Questioned costs: Known questioned costs of $2,066 and likely questioned costs of $11,507 for
Healthy Start.
Recommendation: We recommend that internal controls be strengthened and processes
implemented to ensure all expenses include supporting documentation/invoice indicating period of
performance.
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020‐2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award.
Additionally regulations require the reimbursement payment method may be used on a Federal
award for activities as specified in 2 CFR section 200.305(b)(3), program costs must be paid by non‐
Federal entity funds before submitting a payment request (2 CFR section 200.305(b)(3)), i.e., the non‐
Federal entity must disburse funds for program purposes before requesting payment from the
Federal awarding agency or pass‐through entity.
Condition: The Organization has a policy which in includes thee Fiscal/Grant Manager and/or the CEO
review all drawdown requests to ensure costs are paid before reimbursement is requested. However
of the sixteen (16) drawdown requests that we tested, there was no evidence of review and approval
for payment.
Effect: Management possibly did not expend funds in accordance with the federal award due to lack
of evidence of oversight/review of drawdowns and after reimbursable expenses have been incurred.
Cause: Management did not document evidence of review and approval of drawdown requests. This
was due in part to lack of oversight. Also there were several changes in personnel within the
accounting area and overall limited number of personnel for certain functions and lack of board
oversight.
Questioned costs: None
Recommendation: We recommend that internal controls be strengthened and processes
implemented to ensure all draw down requests are reviewed and approved to ensure costs were
accurately reported and paid before requesting reimbursement.
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020‐2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award. Additionally, under
2 CFR Section 200.320, the Organization must have and use documented procurement procedures
for acquisition of property and services under a federal award or a sub‐award.
Condition: The Organization does have approved policies and procedures over procurement that
meet the requirements of the Uniform Guidance. However the Organization is not following its
prescribed policies and procedures. The Organization lacked supporting documentation verifying
procurement policies and procedures were followed. Due to lack of supporting documentation,
procurement could not be verified. Of the sixty (60) transactions examined, fourteen (14) lacked
supporting documentation for review of procurement.
Effect: Not following procurement policies and procedures may result in funds to be returned back
to grantor and/or impact future funding.
Cause: Supporting procurement documentation for acquisition of property and services were not
properly maintained in part due to several changes in personnel within the accounting area and
overall limited number of personnel for certain functions and lack of board oversight.
Questioned Costs: Known questioned costs of $2,066 and likely questioned costs of $11,507 for
Healthy Start.
Recommendation: We recommend the Organization strengthen its policies and procedures to ensure
procurement is adequately documented for that goods and services purchased in accordance with
Uniform Guidance and other federal guidelines.
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: 5 H49MC00119‐21‐00 / 6 H49MC00119‐20‐01
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2020‐2024
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award. Under 2 CFR part
180, the Organization is required to verify suspension or debarment from the excluded parties list
system regarding compliance.
Condition: Under 2 CFR part 180, the Organization is required to verify suspension or debarment from
the excluded parties list system regarding compliance. Though the Organization did not have a policy
for suspension and debarment, the Organization complied with the requirements.
Effect: Not having a suspension and debarment policy may result in funds to be returned back to
grantor and/or impact future funding.
Cause: Supporting suspension and debarment documentation for acquisition of property and services
were not properly established in part due to several changes in personnel within the accounting area
and overall limited number of personnel for certain functions and lack of board oversight.
Questioned Costs: None
Recommendation: We recommend the Organization strengthen its policies and procedures to ensure
procurement and suspension and debarment is adequately documented for that goods and services
purchased in accordance with Uniform Guidance and other federal guidelines. In addition, the
Organization should verify that all vendors under covered transactions are not listed on the excluded
parties list system by performing a search on sam.gov and maintaining the results of such search in
the vendor’s file.