Audit 402177

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Delivering Evidence-Led In Terventions in Arkansas to Advance Healthy Equity and Access in Diabetes Care (DELTA HEAD) Assistance Listing Number: 93.988 Pass-Through Agencies: N/A Pass-Through Numbers: N/A Award Periods: June 30, 2024 - June 29, 2025 and June 30, 2025 – June 29, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or Specific Requirement: Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. Costs are able to be supported by appropriate documentation, including approvals. Condition: The Organization did not obtain Board Treasurer approval on one general disbursement tested that was in excess of $50,000. Questioned Costs: None. Context: In our sample of 16 general disbursements, one check was in excess of $50,000, and did not obtain the Board Treasurer's approval. Cause: Internal controls and policies put into place by the organizations were not followed. Effect: General disbursements that are not monitored could result in expenses that are not for proper business purposes and inaccurately charged to the federal grant if the Organization is not following their controls and policies in place. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Organization review its policies and procedures during the check signing process to ensure all approvals are obtained as required by the Organization's internal control policy. Views of responsible officials and planned corrective action: There is no disagreement with the audit finding. Action taken in response to finding: Accounting staff will review the policies, procedures, and workflow with grant-focused staff to ensure there is a common understanding across the organization. Name(s) of the contact person(s) responsible for corrective action plan: Matthew Biecker, CFO Planned completion date of corrective action plan: The corrective action plan detailed above is being implemented immediately.