Finding Text
2023-006 – Allowable Costs
Federal agency: U.S. Department of Health and Human Services
Federal program title: Health Centers Cluster
Assistance Listing Number: 93.224/93.527
Pass-Through Agency: n/a
Pass-Through Number(s): n/a
Award Period: 9/1/23-8/31/25; 4/1/21-3/31/23; 6/1/19-5/31/23; 6/1/23-5/31/26; 12/1/22-5/31/23
Type of Finding: Significant deficiency in internal control over compliance
Criteria or Specific
Requirement: § 200.303(a) indicates non-federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition: The Organization could not provide supporting documentation showing management's review and approval of costs totaling $511 for camera supplies.
Questioned Costs: None.
Context: Of the three transactions selected for testing, there was no documentation available to support management's review and approval of one transaction.
Cause: Management turnover.
Effect: If costs are not reviewed and approved as being allowable, it could result in unallowable costs being charged to federal grants.
Repeat Finding: No.
Recommendation: We recommend the Organization maintain approvals electronically within Intacct.
Views of Responsible
Officials: There is no disagreement with the audit finding.