Finding Text
Finding 2025-002 Identification of the federal program: Federal Agency: U.S. Department of Health and Human Services Assistance Listing No: 93.069, Public Health Emergency Preparedness Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR 200.510 requires that the “auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with Section 200.502.” Condition: The preliminary Schedule included $2,662,417 in expenditures that were not federal grant awards. The final Schedule was corrected. Cause: The Corporation’s internal controls over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards. Effect or potential effect: Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes. Questioned costs: None. Part III – Federal Award Findings and Questioned Costs (continued) Context: Total expenditures included on the preliminary Schedule were $5,119,949 for the year ended December 31, 2025. Total federal expenditures on the final Schedule were $2,639,518. The preliminary schedule included $1,393,244 in expenditures related to state-based grant awards to support the Corporation’s poison control program. In addition, $1,269,173 in expenditures related to various state-based grant awards for other programs determined not to be federal awards and no longer reported on the Schedule. Identification as a repeat finding, if applicable: Not applicable. Recommendation: Management should design and implement internal controls to review new and existing awards and agreements to ensure federal awards are identified and expenditures of federal awards are accumulated for reporting on the Schedule. Views of responsible officials: Management agrees with the finding and will enhance internal controls over the grant management process to review and monitor grants awards and other agreements. Management will design and implement internal controls over the completeness and accuracy of the Schedule.