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)
Finding 2023-008: Cash Disbursements (Significant Deficiency)
Criteria:
Expenses that are charged and allocated to government contracts must include evidence of review and
approval by a responsible supervisory official having knowledge of the purpose of the expenditures.
Statement of Condition:
For 38 of our 60 samples, review and approval by a supervisory official for expense reimbursements
was not performed.
Cause:
Procedures and internal controls associated with the review and approval of expenditures were not
adequately documented.
Effect:
Management did not have sufficient documentation of approval for expenditures allocated to
government contracts.
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 2022-004.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that there is
appropriate segregation of duties over the review and approval of expenditures charged to federal
programs.
Views of Responsible Officials:
Management is in agreement with the finding. Management will enhance the policies, procedures and
controls in place over the cash disbursement process to ensure appropriate segregation of duties over
approvals are in place.