Audit 376452

2024-001 Department of Health and Human Services Passed through the State of Minnesota and Canvas Health Federal Assistance Listing #93.959 Substance Abuse Prevention & Treatment Block Grant Award # 873423771 Award Year - 2024 Award # 208341986 Award Year - 2024 Activities Allowed or Unallowed and Allowable Costs/Cost Principles, Cash Management and Period of Performance Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.33(a) establishes that the auditee must establish and maintain effective internal controls over federal awards that provides assurance that the organization is managing the federal award in compliance with federal statues, regulations, and conditions of the federal award. Condition: The Organization did not have a documented review completed prior to invoice payments being made or reimbursement requests being submitted to ensure all costs incurred were allowed and in the correct period of performance under the program. Cause: The Organization did not have controls in place to ensure there was proper review and approval of payments made on the grant and reimbursement requests sent to granting agency. Effect: Costs could be paid or reimbursements requested for expenses that are not allowed under the program or in the proper period. Questioned Costs: None Context: A nonstatistical sample of 30 transactions out of 137 total transactions were selected for testing, which accounted for $148,378 of $699,532 of federal program expenditures. A nonstatistical sample of 8 reimbursement requests out of 23 total reimbursement requests were selected for testing. Repeat Finding from Prior Years: No Recommendation: We recommend a documented approval process be implemented prior to all payments being made, and reimbursement requests being submitted to ensure that costs were allowed, in the correct period of performance, and properly reimbursed under the program. Views of Responsible Officials: Management agrees with the finding.