Finding Text
Identification of Federal Program:
Name of Program: Developmental Disabilities Projects of National Significance
Assistance Listing Number: 93.631
Award Year: 2024
Pass-Through Entity: Direct
Name of Federal Agency: U.S. Department of Health and Human Services
Criteria: 2 CFR Part 910 Subpart F requires auditors to perform procedures to obtain an understanding of internal control over Federal programs sufficient to plan the audit to support a low assessed level of control risk of noncompliance for major programs. Internal control should be implemented to the degree possible to assign to different individuals the responsibility for approving, executing and recording transactions. The basic premise is that no one individual should have access to both physical assets and the related accounting records or to all phases of a transaction.
Condition: The Association failed to properly design and implement internal control procedures for the review and approval of payroll costs charged to the Federal grant program.
Cause: The failure was due to a lack of proper policies and procedures and management turnover.
Effect: Because of the lack of properly designed and implemented internal controls over payroll costs charged to the Federal grant program, we were unable to test internal controls to support a low control risk assessment.
Recommendation: The Association should design and implement procedures to track and verify employees’ time worked on Federal grant programs along with documented reviews and approvals.
Views of Responsible Officials: Management of the Association concurs with the audit finding. See the attached Corrective Action Plan.