Finding Text
Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care and Development Block Grant, Operation of a Child Care Resource Center – Baltimore, Harford and Cecil Counties (691) Assistance Listing Number: 93.575 Award Period: July 1, 2023 – June 30, 2024 (691) Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Condition: The Organization did not maintain documentation to evidence approval of credit card general disbursements charged to the program. Context: Auditors tested two credit card general disbursement transactions out of a total sample of 50 period of performance transactions, and both lacked evidence of appropriate approval to support that the disbursements were recorded within the proper period of performance. Questioned Costs: None Cause: Internal controls over the approval of credit card transactions were not adequately designed and implemented to ensure supporting documentation was maintained. Effect: The absence of effective internal controls over period of performance increases the risk of noncompliance with federal award requirements and the potential for errors. Repeat Finding: Yes; prior year finding 2023-004 Recommendation: We recommend that the Organization design, implement, and monitor effective internal controls over credit card disbursements and maintain appropriate documentation evidencing review and approval to ensure compliance with period of performance requirements. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.