Finding Text
Assistance Listing Number(s): 93.959
Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse
Assistance Listing Number(s): 93.788
Name of Federal Programs or Cluster: State Targeted Response to the Opioid Crisis Grants
Name of Federal Agency: Department of Health and Human Services
Criteria or Specific Requirement: Review and approval of all costs by a person with appropriate knowledge and authority is a requirement for ensuring costs are allowable.
Condition and Context: Review and approval was not routinely documented in the fiscal year ending 6/30/22.
Cause: Routines and habits lapsed during the changes in operations, staffing and management.
Effect or Potential Effect: Undocumented control procedures cannot be confirmed to have been performed.
Repeat Finding: Yes
Recommendation: ARC should implement procedures for documenting review and approval for all time sheets for all employees. Due to the late timing of the 6/30/21 audit, ARC was not able to implement a system prior to June 30, 2022, but has subsequently implemented one prior to the report date.
Views of Responsible Officials: ARC implemented formalized process effective January 1, 2023 including an electronic time record system that will require, track, and document performance of review and approval of employee’s time and is monitored independently by the CFO.