Finding Text
2022-004 Department of Health and Human Services Federal Financial Assistance Listing #93.889, 22SC091990 National Bioterrorism Hospital Preparedness Program Earmarking Material Weakness in Internal Control over Compliance Criteria: 2 CFR 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: The following matters were identified during testing: a) No independent secondary level of review or approval is performed. One employee is involved in preparing, reviewing and approving information. b) No ongoing analysis is completed over comparison of actual expenditures to earmarked expenditures. Cause: The Coalition hasn?t formally adopted and implemented updated internal control procedures to track actual costs to earmarked expenditure thresholds. Effect: Without established controls over earmarking, there is a reasonable possibility that the Coalition would not detect errors in the normal course of performing duties and correct them in a timely manner. Lack of an ongoing analysis of budgeted expenses to actual could result in the Coalition expending more funds than originally earmarked within the grant agreement. Questioned Costs: None reported. Context: Testing was performed over each of the three earmarking requirements identified within the grant agreement. 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 over earmarking, including a periodic analysis of actual expenditures to earmarked expenditures. Views of Responsible Officials: Management agrees with the finding.