Finding Text
2025-005 –ALN 93.623 Basic Center Program Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: N/A Compliance Requirement: Allowable Activities and Allowable Costs/Cost Principles Type of Finding: Material Weakness in Internal Control over Compliance; Noncompliance Criteria: In accordance with Uniform Guidance and Chapter 10.650, costs charged to a federal award or state project must be necessary, reasonable, adequately documented, and consistently treated. Additionally, Uniform Guidance and Chapter 10.650 requires recipients to maintain financial management systems and internal controls that provide for the accurate identification, support, and accountability of expenditures charged to federal awards and state projects. Condition: During testing of expenditures charged to the Basic Center Program (ALN 93.623), we noted that 1 of the 10 disbursements selected for testing lacked sufficient supporting documentation. As a result, we were unable to verify that the expenditure was adequately supported and allowable under the federal award. This condition is further described in the financial statement findings section of this schedule. Questioned Costs: $0 Cause: Management did not consistently maintain documentation sufficient to support expenditures charged to the federal award and state project or implement effective review procedures to ensure supporting documentation was retained and available for audit. Effect: Because adequate supporting documentation was not maintained, the Organization was unable to demonstrate that the expenditure complied with Uniform Guidance and Chapter 10.650 requirements. As a result, there is an increased risk that unallowable or unsupported costs could be charged to the federal award or state project without timely detection. Recommendation: See the recommendation for finding 2025-005 in the financial statement findings section of this schedule.