Finding Text
Finding 2025-004 Activities Allowed/Allowable Costs: Internal Control (Non-Payroll Costs) U.S. Department of Health and Human Services No. 93.558 – Temporary Assistance for Needy Families Grant Period Year Ended June 30, 2025 Criteria: The entity should maintain internal controls to ensure all grant expenditures are properly reviewed and approved by personnel with sufficient knowledge of program requirements prior to processing. Condition and Context: During testing of 58 non-payroll expenditures, we identified 41 exceptions. Thirty-seven expenditures were paid with credit cards that lack review and approval by the program manager. Two expenditures were approved by an individual who was not sufficiently familiar with grant requirements, and two journal entries lacked evidence of review and approval by the program manager. Cause: Management did not establish or consistently follow procedures requiring expenditure approvals by personnel knowledgeable of program requirements and supervisory review of journal entries. Effect: Inadequate review and approval controls increase the risk that unallowable or unsupported expenditures could be charged to the federal program and go undetected. Recommendation: We recommend the Organization develop written policies establishing a review process for the temporary assistance for needy families program for activities allowed/allowable costs and document each review process. Management Response: Policies are being implemented to ensure there is a review process and documentation of the process, see corrective action plan.