Finding Text
Finding Number 2022-006: Charges Not Specified in Grant Contracts (Significant Deficiency over Internal Control and Instances 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 $4,265 non-payroll expenditure for purchased service that was not outlined in the grant contract.
Repeat Finding from Prior Year(s): Yes, Finding Number 2021-004
Cause and Effect: The Health System did not have proper controls in place to ensure expenditures being charged to the program are specifically identified in the grant contract. In addition, the Health System did not have proper controls in place to ensure all invoices are reviewed and approved by management prior to disbursements. The results could lead to noncompliance with compliance requirements of the program.
Questioned Cost: None
Recommendation: We recommend management implement policies and procedures to ensure expenditures charged to the program are in accordance with the grant contracts and that all invoices are reviewed and approved prior to disbursements.
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 implement policies, procedures, and processes to make sure that expenditures are charged to the program in accordance with the grant contracts and that all invoices are reviewed and approved prior to disbursements.