Audit 307762

Finding number: 2023-001 CFDA number: 93.959 CFDA title: Block Grants for Prevention and Treatment of Substance Abuse Criteria: Under the Uniform Guidance, specifically 2 CFR 200.403(g), charges to Federal awards must be documented and supported by a system of internal controls, including documentation of approval of expenses. Condition: Although the Organization was able to provide copies of invoices for the underlying expenses tested, evidence of formal approval for certain expenses was unavailable. Cause: The Organization does not have a system in place to formally document all invoice approvals. Possible effect: While the examined underlying expenses appear necessary and reasonable for the performance of the federal award, there is an elevated risk of unallowable expenses being billed to federal awards. Recommendation: Management should implement procedures for the approval of invoices, clearly outlining the roles and responsibilities of personnel and detailing appropriate documentation of approvals. Views of responsible officials: We agree with the finding. Management does obtain approval for all invoices; however, in certain instances, approval may be given verbally and not formally documented. We will review our current procedures for obtaining and documenting approval and update the procedures to ensure adequate evidence of approval is documented.

Finding number: 2023-001 CFDA number: 93.959 CFDA title: Block Grants for Prevention and Treatment of Substance Abuse Criteria: Under the Uniform Guidance, specifically 2 CFR 200.403(g), charges to Federal awards must be documented and supported by a system of internal controls, including documentation of approval of expenses. Condition: Although the Organization was able to provide copies of invoices for the underlying expenses tested, evidence of formal approval for certain expenses was unavailable. Cause: The Organization does not have a system in place to formally document all invoice approvals. Possible effect: While the examined underlying expenses appear necessary and reasonable for the performance of the federal award, there is an elevated risk of unallowable expenses being billed to federal awards. Recommendation: Management should implement procedures for the approval of invoices, clearly outlining the roles and responsibilities of personnel and detailing appropriate documentation of approvals. Views of responsible officials: We agree with the finding. Management does obtain approval for all invoices; however, in certain instances, approval may be given verbally and not formally documented. We will review our current procedures for obtaining and documenting approval and update the procedures to ensure adequate evidence of approval is documented.