Audit 1678

Per the County Department of Job and Family Services, all expenditures charged to Federal Grants are typically reviewed and approved by administrators or managerial personnel knowledgeable about the respective Federal Grant regulations. Evidence of these approvals on the payment vouchers and/or invoices are necessary to acknowledge that the expenditures are allowable, per specific grant regulations, and are compliant with Uniform Guidance requirements contained in Subpart E of 2 CFR part 200 and Subpart E of 45 CFR part 75. Due to the lack of written internal controls and consistent application of the control procedures over the review of expenditures, five out of sixty (8.3%) of disbursements had no evidence of review and approval by the Department of Job and Family Services grant administrators or managerial personnel knowledgeable about the federal grant regulations. These weaknesses could result in unallowable expenditures being charged to Medicaid or other programs administered by the County Department of Job and Family Services. Formal written procedures should be developed, implemented, and consistently applied to the approval of federal grant expenditures prior to payment. Procedures should include how approvals by management or administrators are documented for each expenditure and the approvals should be done by personnel knowledgeable about the federal program. Implementing a formal control process with help ensure only allowable expenditures are made using federal grant funds.

Per the County Department of Job and Family Services, all expenditures charged to Federal Grants are typically reviewed and approved by administrators or managerial personnel knowledgeable about the respective Federal Grant regulations. Evidence of these approvals on the payment vouchers and/or invoices are necessary to acknowledge that the expenditures are allowable, per specific grant regulations, and are compliant with Uniform Guidance requirements contained in Subpart E of 2 CFR part 200 and Subpart E of 45 CFR part 75. Due to the lack of written internal controls and consistent application of the control procedures over the review of expenditures, five out of sixty (8.3%) of disbursements had no evidence of review and approval by the Department of Job and Family Services grant administrators or managerial personnel knowledgeable about the federal grant regulations. These weaknesses could result in unallowable expenditures being charged to Medicaid or other programs administered by the County Department of Job and Family Services. Formal written procedures should be developed, implemented, and consistently applied to the approval of federal grant expenditures prior to payment. Procedures should include how approvals by management or administrators are documented for each expenditure and the approvals should be done by personnel knowledgeable about the federal program. Implementing a formal control process with help ensure only allowable expenditures are made using federal grant funds.