Finding Text
Finding 2023-02 - Activities Allowed or Unallowed Significant Deficiency in Internal Controls over Compliance Identification of the federal program(s): Assistance Listings program titles and numbers: 93.591 Family Violence Prevention and Services Act 14.228 Community Block Development Grant (CBDG-CV) Federal award identification number: 93.591: Ohio Domestic Violence Network (2021-CM-004-479CM), Ohio Office of Criminal Justice Services (2021-SA-RCC-459SA, 2021-AR-003-459AR, 2021-CM-003-459CM, 2023-VP-003-4194) 14.228: Ohio Department of Development (B-D-22-1AE-4) Name of the federal agencies: 93.591 Department of Health and Human Services 14.228 Department of Housing and Urban Development Name of the applicable pass-through entities: 93.591: Ohio Domestic Violence Network, Office of Criminal Justice Services 14.228: Ohio Department of Development Criteria or specific requirement (including statutory, regulatory, or other citation): The 2 CFR section 200.303 of the Uniform Guidance requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition: During the audit, it was noted that 48 out of 50 non-payroll charges for both programs lacked invoice approvals, as approvals were not required for the actual transactions. Instead, approvals are only obtained during the submission of budgets and related modifications. Cause: Failure to adhere to their established process led to the absence of approvals for the actual transactions. Effect or potential effect: Without adequate internal controls to ensure that all charges to the federal program are properly reviewed for allowability, SAOP could be noncompliant with the allowability requirement and might request funds for unallowed costs. Questioned costs: None Context: There are no invoice approvals for non-payroll charges in both programs Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend that SAOP secure approvals for charges related to the federal programs. Views of responsible officials: Management agrees with the finding and recommendation.