Finding Text
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of California, Department of Health Care Services (COVID-19)
Program Name (Assistance listing #):
Substance Abuse and Mental Health Services Projects of Regional and National Significance (93.243)
Finding 2023-009: 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 39 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:
No
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.