Finding Text
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Foster Care Title IV-E & Stephanie Tubbs Jones Child Welfare Services Program Assistance Listing Numbers: 93.658 & 93.645 Federal Award Identification Number and Year: 2220016-02 (2024) & 2220017-02 (2024) Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Material Weakness in Internal Control over Compliance- Cash Management Criteria: Accurate invoices need to be prepared using actual expenses incurred, reviewed, and submitted to funders. This process is vital in order to accurately state the Organization's revenue internal control to ensure there are no material misstatements contained within the financial statements. Condition: During our testing of cash management invoices, it was noted that invoices were not being approved before submission. Context: It was noted through testing of cash management invoices that all invoices tested did not have proper approvals before submission. Cause: Lack of internal control processes. Effect: Lack of review and approval of invoices before submission can lead to misstatements in the financial statements and incorrect use of federal awards. Repeat Finding: Yes Recommendation: We recommend that management ensure that all invoices are reviewed and approved before submission. Views of Responsible Officials: Please refer to NET Treatment Services, Inc., dba: NET Community Care’s Corrective Action Plan.