Finding Text
Finding Number: 2022-003
Finding Type: Federal award finding and financial statement finding
Federal Assistance Listing No.: 93.591
Program Name: Family Violence Prevention and Services/State Domestic Violence Coalition
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entity: n/a
Grant Number: 2101ORSDVC
Federal Award Year: 2021
Control Deficiency Type: Material weakness in internal controls over compliance and financial reporting
Instance of Noncompliance: Yes
Compliance Requirement: Allowable costs
Questioned Costs: None over $25,000
Repeat Finding: No
Criteria: Costs must be adequately documented in order to be allowable under federal awards. Documentation
should include original invoice, or other support, and documentation of review and approval for payments
charged to the award.
Condition: During our review of expenses charged to the award, we noted that there was no invoice or other
support for 5 of the original sample size of 40 expenditures. In addition, there was no documentation of review
and approval for 10 of the remaining 35 expenditures. The sample population totaled $72,265, the 5 charges with
no support totaled $2,977 and the 10 charges with no documented review and approval totaled $11,336.
Cause: We understand that the Coalition has established a policy with regard to maintaining supporting documents
and documented review and approval of expenditures; however, it appears the policy was not always followed.
Effect: Undocumented and/or not reviewed and approved charges could result in unallowable costs charged to
federal awards.
Audit Recommendation: The Coalition should establish monitoring procedures to ensure that charges to federal
awards and other funders are adequately documented and approved, and comply with all established policies.
Specifically, adequate documentation should include original itemized invoices or receipts, and clear documentation
of review and approval.
Management’s Response: OCADSV has implemented a third-party service for tracking the Coalitions costs. The
submission, coding, approval and payment are processed within this software, which also allows for an audit trail
of the processes performed by user and quick access to scanned original documentation. Quarterly budget expense
reimbursements are prepared and submitted for review to the Associate Director and/or the Grants Manager.
The quarterly reports are reviewed and approved, with general ledger support, before sending them to the
funding agency as the quarterly invoice for reimbursements.