Finding Text
2022-001 Department of Health and Human Services Federal Financial Assistance Listing #93.889, 22SC091990 National Bioterrorism Hospital Preparedness Program Activities Allowed and Allowable Costs, Period of Performance, Cash Management and Reporting Material Weakness in Internal Control over Compliance Criteria: 2CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: No independent secondary level of review or approval is performed relating to compliance. One employee is involved in preparing, reviewing and approving information. Additionally, internal control procedures documented within Coalition?s Grant Management Policy have not been updated since departure of the Grant Management Director. Cause: The Coalition hasn?t formally adopted and implemented updated internal control procedures since departure of the Grant Management Director. Effect: Without established controls over activities allowed and allowable costs, period of performance, cash management and reporting, there is a reasonable possibility that the Coalition would not detect noncompliance in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context: Testing was performed over the compliance requirements as follows: -Activities Allowed, Allowable Costs and Period of Performance ? A non-statistical sample of 60 nonpayroll transactions were selected for testing, accounting for approximately $379,111 of $749,012 total non-payroll costs charged to the federal award. Additionally, all Executive Director wages charged to the federal award were tested. -Cash Management ? A non-statistical sample of 13 out of 64 draw requests were selected for testing. -Reporting ? the close-out report required to be filed in the fiscal year was tested. Repeat Finding from Prior Year: No Recommendation: We recommend that management implement procedures and control processes to incorporate and document an independent review and approval. Views of Responsible Officials: Management agrees with the finding.