Finding 391447 (2023-005)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-04-01

Audit: 301941

Organization: Area Four Senior Citizens Planning Council, Inc. (SD)

Auditor: Eide Bailly LLP

AI Summary

Core Issue: There is a significant deficiency in internal controls over compliance, specifically regarding invoice approvals.
Impacted Requirements: Payments were made without proper documentation to confirm that costs were allowed under the program.
Recommended Follow-Up: Implement a documented approval process for all payments to ensure compliance with program requirements.

Finding Text

2023-005 Department of Health and Human Services Passed through the State of South Dakota Department of Human Services Special Programs for the Aging - Title III, Part C - Nutrition Services #93.045 Nutrition Services Incentive Program #93.053 Award # 24SC193061 Award Year – 2024 Award # 23SC193061 Award Year – 2023 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Controls over Compliance Criteria: A good internal control structure would require documented review to be completed prior to invoice payments being made to ensure all costs incurred were allowed under the program. Condition: In testing, it was noted that 3 invoices that were paid with electronic payment were not approved prior to payment being made. Cause: With payments made by electronic payments only, there was not documentation maintained to show approval of the expenses. Effect: Costs can be paid that are not allowed under the program. Questioned Costs: None Context/Sampling: Nonstatistical sampling was used. Sample size was 3 of 60 transactions. Repeat Finding from Prior Year(s): No Recommendation: We recommend a documented approval process be implemented prior to all payments being made to ensure that costs were allowed under the program. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Current Audit Finding: 2023-005 – Department of Health and Human Services Passed through the State of South Dakota Department of Human Services Special Programs for the Aging - Title III, Part C - Nutrition Services #93.045 Nutrition Services Incentive Program #93.053 Award # 24SC193061 Award Year – 2024 Award # 23SC193061 Award Year – 2023 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Finding Summary: In testing, it was noted that 3 invoices that were paid with electronic payment were not approved prior to payment being made. Responsible Individual: Marla Kiesz, Executive Director Corrective Action Plan: Due to cost considerations and limited accounting staffing, we are aware of the condition and mitigate it with oversight from management and the Board of Directors and review of the transactions in each fund to ensure all entries are posted and paid as anticipated. Anticipated Completion Date: ongoing

Other Findings in this Audit

391448 2023-005

Significant Deficiency
391449 2023-005

Significant Deficiency
391450 2023-005

Significant Deficiency
967889 2023-005

Significant Deficiency
967890 2023-005

Significant Deficiency
967891 2023-005

Significant Deficiency
967892 2023-005

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
93.045	Special Programs for the Aging_title Iii, Part C_nutrition Services	$757,501
93.053	Nutrition Services Incentive Program	$186,271