Finding Text
2024-002 Vendor Records Federal Agency: Department of Health and Human Services Federal Program Name: Child Care and Development Fund Cluster Program Year: 2024 Assistance Listing Number: 93.575 Compliance: Activities Allowed and Unallowed and Allowable Costs/Cost Principles Finding Type: Significant deficiency in internal control over compliance Criteria: Management is responsible for maintaining adequate records for vendor transactions charged to federal awards that accurately reflect expenses. These records must include an invoice with a signature from a knowledgeable individual approving the expense. Condition and context: During compliance testing, it was noted that 34 out of 60 vendor transactions tested were missing approval by knowledgeable individuals. Cause of Condition: The Boys and Girls Clubs of Central and Northern New Hampshire, Inc.’s internal controls did not enforce documented vendor invoice approvals prior to payment. Effects of Condition: Without documented approval, there is an increased risk that unallowable or erroneous costs could be charged to the federal program, potentially resulting in noncompliance with Uniform Guidance requirements. Recommendation: It is recommended that The Boys and Girls Clubs of Central and Northern New Hampshire, Inc. require and document approval of all vendor invoices before payment, either with a signature, initials or digital system log. View of Responsible Officials and Planned Corrective Action: The Club has reviewed the findings and acknowledges the importance of documented controls over federal expenditures. The expenses noted were submitted for payment by the appropriate approver via Email, however, the emails were not maintained due to staff turnover. To address this finding, all grant expenditures are documented with approval and scanned prior payment. Planned Implementation Date of Corrective Action: Corrective action plan has been implemented. Person Responsible for Corrective Action: Amanda Stewart, CPA, Senior Staff Accountant