Finding Text
Finding No. 2025-001 Federal Agency: U.S. Department of Health and Human Services and U.S. Department of Treasury Federal Program Name: Temporary Assistance for Needy Families, Substance Abuse and Mental Health Services Projects of Regional and National Significance, and COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 93.558, 93.243, and 21.027 Pass-Through Agency: Various. Refer to Schedule of Expenditures of Federal Awards Pass-Through Agency Identifying Numbers: Various. Refer to Schedule of Expenditures of Federal Awards Award Period: 2025 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Audit finding required to be reported in accordance with 2 CFR 200.516(a) Criteria: Proper documentation to ensure salaried employee time allocation is reviewed and approved must be obtained. Condition: The Organization’s internal control procedures around maintenance of documentation is not sufficient to ensure that costs submitted for reimbursement were properly approved. Questioned Costs: None. Context: A sample of 40 employees was selected for testing for each major program for a total of 120 selections. The Organization was unable to provide evidence of approval for 57 selections. Cause: Controls were not in place to ensure underlying support as required by the Federal Uniform Guidance was properly maintained. Effect: Without proper document retention of the approved salary employee time allocations, the Organization could submit unallowable costs for reimbursement. Repeat Finding: Finding does not represent a repeat finding. Recommendation: We recommend management enhance internal control policies and procedures to ensure underlying supporting documentation of approvals is fully retained going forward. Views of Responsible Officials: Management concurs with the finding. Management will implement a document retention policy to ensure timecard approvals are maintained.