Audit 379262

Federal Agency: Department of Health and Human Services Federal Program Title: Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers Assistance Listing Number: 93.AGING Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: October 1, 2023 – September 30, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance Criteria or specific requirement: According to 2 CFR 200, all disbursements must be supported by appropriate documentation to ensure the accuracy and reliability of the compliance with applicable regulations. Condition: The audit revealed that several disbursements processed during the period lacked proper supporting documentation. Specifically, there were instances where disbursements were made without invoices, receipts, or other relevant documentation to substantiate the transactions. Questioned costs: $9,369 Context: During testing, CLA noted there were 2 general disbursements that didn't have supporting invoices and 3 payroll disbursements that didn't have supporting timecards. Cause: The lack of support for disbursements may be attributed to inadequate internal controls over the disbursement process. This includes insufficient oversight and review procedures to ensure that all disbursements are properly documented before processing. Effect: The absence of supporting documentation for disbursements increases the risk of financial misstatement and may lead to unauthorized or inappropriate transactions. This undermines the reliability of the financial statements and may result in non-compliance with regulatory requirements. Repeat finding: No Recommendation: We recommend the Agency to strengthen internal controls over the disbursement process by implementing procedures to ensure all disbursements are properly documented and reviewed before processing. Views of responsible officials: There is no disagreement with the audit finding. Management has subsequently engaged a payroll service provider and an outsourced accountant to improve internal controls.