Finding 1148944 (2023-001)

Finding 2023-001, Adherence and Application of Policies and Procedures 2022-002, 2021-002 for Financial Management – Repeat Finding Federal Agency: U.S. Department of Health and Human Services Program Name: Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security Assistance Listing #: 93.318 Questioned Costs: None Condition/Context We tested a sample of twenty-two transactions for Activities Allowed, Allowable Cost/Cost Principles. Seven transactions selected for testing did not have evidence that they were approved by upper management. Criteria Per the Organization’s Policies and Procedures for Financial Management, upper management is responsible for the approval of invoices after they have been reviewed by the individual who procured them. Cause The Organization did not adhere to its Policies and Procedures for Financial Management. Effect The Organization did not comply with its Policies and Procedures for Financial Management. Non-adherence and inconsistent application of established policies and procedures could result in noncompliance or unallowed costs that are not detected or corrected on a timely matter. Recommendation We recommend that the Organization adheres to its Policies and Procedures for Financial Management by ensuring the review and approval of expenditures by upper management is performed and documented. Organization’s Management Response See corrective action plan.