Finding Text
Finding Number 2021-005 Internal Controls over Allowable Costs/Cost Principles Activities, U.S. Department of Housing and Urban Development, Passed Through Arizona Department of Economic Security, Aging Cluster, ALN 93.044/93.045/93.053, July 1, 2020 through June 30, 2021 (Significant Deficiency). Statement of Condition: Six payroll registers of eight tested did not show evidence of approval by the Chief Financial Officer. Questioned Costs: None Criteria: The Organization must comply with allowable costs/cost principle compliance standards as set by the U.S. Department of Health and Human Services. Controls over payroll were not followed adequately to ensure accurate and complete payroll expense. Cause: The Organization’s controls over payroll were not followed. Effect: Payroll expense charged to the Aging Cluster programs may not be accurate. Recommendation: We recommend that the Organization more closely follow its controls over payroll expenses.