Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: Substance Abuse Prevention and Treatment Block Grant (SABG)
Assistance Listing Number: 93.959
Federal Award Identification Number and Year: K6103.01 – 2023
Pass-Through Agency: Washington State Health Care Authority
Pass-Through Number(s): K6103.01
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: Proper internal controls over general disbursements include the review and approval of expenditures by a supervisor prior to payment.
Condition: There were two general disbursements identified during allowable costs and activities testing that did not have documentation of proper expense approval by the program supervisor.
Questioned costs: None.
Context: Internal Controls tested during allowable costs and activities testing included the proper documentation of supervisor approval for expenses. Of the 30 general disbursements tested for allowable costs and activities, two did not have support for supervisory approval.
Cause: Lack of review and approval of specific expenditures appears to be an internal control oversight.
Effect: Lack of supervisory approval of expenditures could result in costs allocated to the grant that are not allowable.
Repeat finding: Not a repeat finding.
Recommendation: CLA recommends that all invoices are approved by a supervisor knowledgeable of the grant requirements prior to payment by the accounting department, and that documentation of this review is retained.
Views of responsible officials: There is no disagreement with the audit finding.