Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: Substance Abuse Prevention and Treatment Block Grant (SABG); SOR Recovery Support Services
Assistance Listing Number: 93.959 and 93.788
Federal Award Identification Number and Year: K6103.01 – 2023, 1009592.16 – 2023, K4849-02 – 2022, K6479 - 2023
Pass-Through Agency: Washington State Health Care Authority; Beacon Health Options, Inc.
Pass-Through Number(s): K6103.01, 1009592.16, K4849-02, K6479
Award Period: July 1, 2022 – June 30, 2023; September 30, 2020 – September 29, 2022; September 29, 2022 – September 28, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: Proper internal controls over cash management and indirect costs include the review and approval of grant draws prior to submission to the granting agency, to ensure accuracy of expenditures.
Condition: Grant billings are to be reviewed and approved by the CFO or CEO prior to submitting to the granting agency. There was no documentation of review and approval by the CFO or CEO.
Questioned costs: None.
Context: There was no prior review and approval indicated on any of the cash management drawdowns reviewed as part of audit testing.
Cause: Inadequate implementation of internal controls over compliance related to cash management and indirect costs. There was also turnover in the CFO position during the fiscal year.
Effect: Lack of an independent review and approval of grant billings resulted in incorrect items being included on the billings and errors going undetected.
Repeat finding: Not a repeat finding.
Recommendation: CLA recommends that all grant draw requests are reviewed in detail with support for the expenditures and approved by an individual separate from the one preparing the draw request prior to submission to the granting agency.
Views of responsible officials: There is no disagreement with the audit finding.