Finding Text
Federal program information:
Funding agency: U.S. Department of Health and Human Services
Title: Health Center Program Cluster
Assistance listing numbers: 93.224 & 93.527
Award year and number: 2023 H80CS00036
Criteria: 2 CFR Section 200.302 of the Uniform Guidance requires that organizations maintain complete and detailed records that document the source and application of federal funds. Adequate recordkeeping is essential for financial accountability and compliance with accounting standards.
Condition: Transactions reviewed were lacking itemized receipts from the supporting documentation; however, it should be noted that AHCH provided credit card statements for these transactions, which allowed for some level of verification.
Questioned Costs: None
Context: Of a sample of 25 transactions, two were missing itemized receipts from the supporting documentation.
Cause: The missing itemized receipts may be due to oversight or lack of a robust internal control process for maintaining records.
Effect: The absence of itemized receipts hinders the ability to verify the legitimacy and appropriateness of these transactions, which raises concerns about the accuracy of financial reporting and compliance with accounting standards and the Uniform Guidance.
Auditor’s Recommendations: Management should enforce existing internal control procedures to ensure that all transactions are adequately documented with itemized receipts. Training and guidance should also be provided to staff responsible for record-keeping to emphasize the importance of maintaining complete and detailed documentation.
Management’s Response: The finance team will work to ensure that the policy regarding the use of corporate credit cards is followed. All management staff that have organizational corporate cards will be retrained on the importance of obtaining itemized receipts. In the event a receipt is lost, regardless of verifying the legitimacy of the purchase with the purchase with the direct supervisor, the finance team will ensure that the expense is not charged to any federal funding.