Finding Text
2024-001 - Lack of Independent Review and Approval
Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles: ALN 93.600 and 64.033, Reporting: ALN 64.033 and Eligibility: ALN 64.033).
Program. Head Start; U.S. Department of Health and Human Services; Assistance Listing Number 93.600; All Award Numbers and VA Supportive Services for Veteran Families Program; Department of Veterans Affairs, Assistance Listing Number 64.033; All Award Numbers.
Criteria. Per 2 CFR 200.303, the recipient and subrecipient must establish, document, and maintain effective internal controls over federal awards that provides reasonable assurance that the recipient or subrecipient is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the Federal award.
Condition. During our testing of Allowable Costs, we noted 4 disbursements tested did not have signed and approved purchase orders. During our testing of Reporting, we noted two quarterly reports that had no evidence of review and approval. During our Eligibility testing, we noted one applicant whose certification form was not signed by the supervisor.
Cause. This condition is the result of management not adhering to the Organization's internal control policies.
Effect. As a result of this condition, there is an increased risk of unallowable expenses being charged to the grant, inaccurate financial reporting, allowing ineligible participants to receive grant benefits and other potential noncompliance with federal regulations.
Questioned Costs. No costs are required to be questioned as a result of this finding, inasmuch as no unallowable expenditures were noted.
Recommendation. We recommend the Agency adheres to their internal control process of an independent review and approval of transactions and reporting related to federal grant programs.
View of Responsible Official. Management agrees with this finding and has prepared a Corrective Action Plan.