Finding Text
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Criteria:
Funding requests for cost reimbursement contracts must be based on actual costs incurred prior to
reimbursement request. For funding requests made in advance of related expenditures, requests must
be in amounts that minimize the time between cash receipt and when the funds are spent. Review of
funding requests must be performed by an employee with knowledge of the government contract and
of the funding needs of the federal program.
Statement of Condition:
For all selected sampled contracts under the advance payment method, there was no evidence of review
and approval of the funding requests submitted.
Cause:
Procedures and internal controls associated with the preparation of funding requests were not
adequately documented.
Effect:
Management did not have sufficient documentation for the funding requests submitted for government
contract.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-003.
Recommendation:
We recommend that management implement policies, controls and procedures to evidence review and
approval of all funding requests from government contracts to comply with applicable cash
management requirements.
Views of Responsible Officials:
Management is in agreement with the finding. Management is in the process of implementing
additional policies, procedures and controls over the preparation, review and approval of funding
requests submitted for government contracts.