Finding 1118444 (2024-002)

Finding Number: 2024-002 Disbursement Documentation - Significant Deficiency; Repeat Finding: No; Questioned Costs: None; Funding Agency: Department of Health and Human Services, US Department of Treasury AL Number: 93.243, 21.027 Award Year: 7/1/2023 – 6/30/2024, 7/1/2023 – 6/30/2024 Condition: A sample of expenses were selected to test internal control over compliance and compliance with allowable costs/cost principles. Out of the items selected for testing, we noted insufficient documentation to support approval on 10 out of the 18 expenses selected for testing. Criteria: The Organization is required to follow the Uniform Guidance requirement 2 CFR 200.303, which requires the Organization to establish, document and maintain effective internal controls over federal awards. The Organization verbally approved these expenses but lacked the documentation to support the approval. Cause: The Organization’s fiscal policies and procedures did not require written approval, leading to reliance on verbal approvals which were not documented. Effect: The failure to document approvals for expenses could lead to unallowable costs to be disbursed on grant awards. Effect: The failure to document approvals for expenses could lead to unallowable costs to be disbursed on grant awards. View of Responsible Officials: Management agrees with the finding and has committed to implementing a corrective action plan. Management has hired new fiscal staff and implemented a new expense management system that requires invoice approvals for all purchases.