2022-005 – Non Payroll Expenses- Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
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, 45 CFR, part 75 all costs must be adequately documented.
Condition: The Organization lacked supporting documentation for certain non-payroll expenses and lacked evidence of review for certain non-payroll expenses. Due to the lack of supporting documentation or evidence of approval for payment, certain expenses could not be verified. Of the sixty (60) transactions examined eight (8) lacked supporting documentation and twenty five (25) lacked evidence of review, and approval for payment.
Effect: Management possibly did not expend funds in accordance with the approved detailed line-item 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 $980 and likely questioned costs of $5,791 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.
2022-006: Period of Performance – Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
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 certain non-payroll expenses and lacked evidence of review for certain non-payroll expenses. Due to lack of supporting documentation and evidence of approval for payment, certain transactions could not be verified. Of the sixty (60) transactions examined, eight (8) lacked supporting documentation and twenty five (25) lacked evidence of review, and approval for payment.
Effect: Management possibly did not expend funds in accordance with the approved detailed line-item 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 $980 and likely questioned costs of $5,791 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.
2022-007: Cash Management - Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
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 includes the 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 drawdown.
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.
2022-008: Procurement – Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
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, thirty three (33) 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 $980 and likely questioned costs of $5,791 for Healthy Start.
Recommendation: We recommend the Organization strengthen its policies and procedures to ensure procurement is adequately documented that goods and services are purchased in accordance with Uniform Guidance and other federal guidelines.
2022-009: Suspension and Debarment- Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
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.
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 the 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 suspension and debarment is adequately documented 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.
2022-005 – Non Payroll Expenses- Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
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, 45 CFR, part 75 all costs must be adequately documented.
Condition: The Organization lacked supporting documentation for certain non-payroll expenses and lacked evidence of review for certain non-payroll expenses. Due to the lack of supporting documentation or evidence of approval for payment, certain expenses could not be verified. Of the sixty (60) transactions examined eight (8) lacked supporting documentation and twenty five (25) lacked evidence of review, and approval for payment.
Effect: Management possibly did not expend funds in accordance with the approved detailed line-item 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 $980 and likely questioned costs of $5,791 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.
2022-006: Period of Performance – Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
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 certain non-payroll expenses and lacked evidence of review for certain non-payroll expenses. Due to lack of supporting documentation and evidence of approval for payment, certain transactions could not be verified. Of the sixty (60) transactions examined, eight (8) lacked supporting documentation and twenty five (25) lacked evidence of review, and approval for payment.
Effect: Management possibly did not expend funds in accordance with the approved detailed line-item 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 $980 and likely questioned costs of $5,791 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.
2022-007: Cash Management - Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
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 includes the 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 drawdown.
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.
2022-008: Procurement – Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
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, thirty three (33) 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 $980 and likely questioned costs of $5,791 for Healthy Start.
Recommendation: We recommend the Organization strengthen its policies and procedures to ensure procurement is adequately documented that goods and services are purchased in accordance with Uniform Guidance and other federal guidelines.
2022-009: Suspension and Debarment- Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
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.
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 the 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 suspension and debarment is adequately documented 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.
2022-005 – Non Payroll Expenses- Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
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, 45 CFR, part 75 all costs must be adequately documented.
Condition: The Organization lacked supporting documentation for certain non-payroll expenses and lacked evidence of review for certain non-payroll expenses. Due to the lack of supporting documentation or evidence of approval for payment, certain expenses could not be verified. Of the sixty (60) transactions examined eight (8) lacked supporting documentation and twenty five (25) lacked evidence of review, and approval for payment.
Effect: Management possibly did not expend funds in accordance with the approved detailed line-item 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 $980 and likely questioned costs of $5,791 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.
2022-006: Period of Performance – Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
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 certain non-payroll expenses and lacked evidence of review for certain non-payroll expenses. Due to lack of supporting documentation and evidence of approval for payment, certain transactions could not be verified. Of the sixty (60) transactions examined, eight (8) lacked supporting documentation and twenty five (25) lacked evidence of review, and approval for payment.
Effect: Management possibly did not expend funds in accordance with the approved detailed line-item 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 $980 and likely questioned costs of $5,791 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.
2022-007: Cash Management - Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
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 includes the 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 drawdown.
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.
2022-008: Procurement – Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
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, thirty three (33) 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 $980 and likely questioned costs of $5,791 for Healthy Start.
Recommendation: We recommend the Organization strengthen its policies and procedures to ensure procurement is adequately documented that goods and services are purchased in accordance with Uniform Guidance and other federal guidelines.
2022-009: Suspension and Debarment- Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
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.
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 the 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 suspension and debarment is adequately documented 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.
2022-005 – Non Payroll Expenses- Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
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, 45 CFR, part 75 all costs must be adequately documented.
Condition: The Organization lacked supporting documentation for certain non-payroll expenses and lacked evidence of review for certain non-payroll expenses. Due to the lack of supporting documentation or evidence of approval for payment, certain expenses could not be verified. Of the sixty (60) transactions examined eight (8) lacked supporting documentation and twenty five (25) lacked evidence of review, and approval for payment.
Effect: Management possibly did not expend funds in accordance with the approved detailed line-item 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 $980 and likely questioned costs of $5,791 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.
2022-006: Period of Performance – Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
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 certain non-payroll expenses and lacked evidence of review for certain non-payroll expenses. Due to lack of supporting documentation and evidence of approval for payment, certain transactions could not be verified. Of the sixty (60) transactions examined, eight (8) lacked supporting documentation and twenty five (25) lacked evidence of review, and approval for payment.
Effect: Management possibly did not expend funds in accordance with the approved detailed line-item 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 $980 and likely questioned costs of $5,791 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.
2022-007: Cash Management - Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
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 includes the 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 drawdown.
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.
2022-008: Procurement – Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
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, thirty three (33) 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 $980 and likely questioned costs of $5,791 for Healthy Start.
Recommendation: We recommend the Organization strengthen its policies and procedures to ensure procurement is adequately documented that goods and services are purchased in accordance with Uniform Guidance and other federal guidelines.
2022-009: Suspension and Debarment- Material Weakness – Originated in 2019
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119-22-00
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.
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 the 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 suspension and debarment is adequately documented 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.