Finding Text
Finding 2025-004: Reporting and Internal Controls Identification of the Federal Program - US Department of Health and Human Services, 93.778 Grants to States for Medicaid Criteria - In accordance with 2 CFR 200.329(c)(1) recipients and subrecipients must submit performance reports as required by the Federal award. In accordance with 2 CFR 200.303(a) recipients and subrecipients of Federal Awards must establish, document, and maintain effective internal controls over the Federal award that provides reasonable assurance that they are managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Recipients and subrecipients of federal awards must maintain evidence that such internal controls were performed. Condition - The Organization was unable to provide sufficient and appropriate evidence that reports required under the federal program were reviewed and approved by appropriate personnel prior to submission to the granting agency. Additionally, the Organization was unable to provide sufficient and appropriate evidence that one out of five selected reports was prepared and submitted as required under the federal program. Cause - Due to a lack of formal documentation of current policies and procedures, the Organization did not maintain sufficient or appropriate evidence that reviews and approvals were performed for five of the five sampled reports. Due to a lack of formal policies and procedures, the Organization did not maintain sufficient or appropriate evidence that reports submitted through the Women & Minorities portal were prepared or submitted. Effect - Reports submitted to the granting agency may be incomplete or inaccurate. Questioned Costs – None Context - Management was unable to produce sufficient and appropriate evidence that five of the five reports selected for testing were reviewed and approved prior to submission to the granting agency. For one report selected, we noted the underlying data did not reconcile to the final report submitted to the granting agency. Additionally, for one report selected, the Organization was unable to provide sufficient and appropriate evidence that the report was prepared and submitted. Repeat Finding – No Recommendation - We recommend the Organization establish formal internal controls, and documentation of their performance, relating to the review and approval of reports by appropriate personnel who is knowledgeable of such reporting requirements. Additionally, we recommend the Organization develop internal controls relating to the documentation of reports submitted through the Women & Minorities portal. View of Responsible Officials - Management will formalize the review and approval process for required federal financial reports. Reports will be reviewed by appropriate personnel knowledgeable of grant requirements, and evidence of the review will be maintained.