Finding Text
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Opioid STR; Block Grants for Prevention and Treatment of Substance Abuse Assistance Listing Number: 93.788, 93.959 Federal Award Identification Number and Year: 167552 - 2024 Pass-Through Agency: Oregon Health Authority Pass-Through Number(s): 167552 Award Period: January 4, 2021, through September 29, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Criteria or specific requirement: 2 CFR 200.303(a) states that a non-federal entity must "Establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award." Condition: During our testing we noted that documentation of the review and approval process for indirect costs charged to federal funds, as well as for quarterly reports, was not retained. Questioned costs: None. Context: CLA tested four billing reconciliations that were prepared to recognize the true revenue. For one billing reconciliation, no evidence of review and approval of the indirect cost charged to federal fund (i.e. monthly journal entries) were retained. For all quarterly reporting samples tested (two), no evidence of review and approval was retained to ensure reports are accurate. Cause: Inconsistent application of internal controls procedures. Effect: Without adequate controls in place to ensure costs are accurate, it may result in misappropriation of funds and noncompliance with grant regulations, which could result in penalties or repayment obligations. Repeat Finding: No Recommendation: CLA recommends that additional emphasis of documentary evidence of approvals be made, and such evidence obtained and retained by the Alliance as proof of oversight of expenditure of federal funds. Additionally, CLA recommends increased emphasis and training on the importance of consistent application of procedures and controls. Views of responsible officials: There is no disagreement with the audit finding.