Finding Text
Finding Number 2022-005: Gift Card Tracking (Significant Deficiency over Internal Control and Instance of Noncompliance – Allowable Costs/Cost Principles) FALN Number 16.575 U.S. Department of Justice, Office of Victims of Crime – Crime Victim Assistance
Criteria: 2022 Compliance Supplement and 2 CFR 200.303(a) stated that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and terms and conditions of the federal award.
Condition/Context: As a result of our audit procedures to evaluate the summary schedule of prior audit findings, we noted 1 sample of a $5,008 gift card purchase with multiple gift cards was not tracked with an inventory system to allow for the expenditure to the grantor to be invoiced after gift cards are distributed. We also noted the Health System did not have policies and procedures related to gift card tracking.
Repeat Finding from Prior Year(s): Yes, Finding Number 2021-003
Cause and Effect: The Health System did not have proper controls in place to ensure proper tracking of the gift cards, which could lead to noncompliance with program compliance requirements.
Questioned Cost: None
Recommendation: We recommend management implement policies and procedures to ensure proper tracking of gift card distributions for victims of crime.
Views of Responsible Officials and Planned Corrective Action: Management agrees with finding. The Health System will review and modify policies and procedures over the program to ensure management implements policies, procedures, and processes to properly track the distribution of gift cards for victims of crime.