Audit 392040

Significant Deficiencies Federal Program: U.S. Department of Health and Human Services Pass-Through from Maryland Department of Health and Cecil County Health Department Major Program: Opioid State Targeted Response (93.788) Finding 2025 - 004: Transactions Lacking Adequate Documentation – Allowable Costs Criteria: 2 CFR Part 200.403(g) requires that costs should be adequately documented to support the nature and amount of a transaction for such charges to be allowable under federal awards. In addition, 2 CFR Part 200.334 requires recipients to maintain financial records sufficient to show compliance with federal statues, regulations, and terms and conditions of the award. Condition: During our audit we identified certain transactions without adequate documentation. Context: A review of 40 disbursements totaling $41,262 noted two transactions without proper support. One employee reimbursement was overpaid due to an incorrect reimbursement form, and one disbursement did not have proper approval of the invoice. Cause: The employee improperly completed the reimbursement form, and the total amount did not match the original receipt. The supervisor failed to notice this difference when reviewing the form. For the other disbursement, the invoice was not properly reviewed and approved by a supervisor prior to payment. Effect: Costs could be deemed unallowable by the awarding agency if not properly substantiated and grant funding could be improperly spent. Questioned Costs: $1,434 of known costs charged to federal awards without adequate documentation. Recommendation: We recommend the Organization reiterate its policy to employees to properly calculate and document reimbursement forms. We also recommend that management adequately review and approve all invoices as they arrive. View of Responsible Officials and Planned Corrective Action: We are in agreement with the finding and will reinforce our policies on reimbursements and invoice approvals.