Finding Text
Finding number: 2023-001
CFDA number: 93.959
CFDA title: Block Grants for Prevention and Treatment of Substance Abuse
Criteria: Under the Uniform Guidance, specifically 2 CFR 200.403(g), charges to Federal
awards must be documented and supported by a system of internal controls, including documentation
of approval of expenses.
Condition: Although the Organization was able to provide copies of invoices for the
underlying expenses tested, evidence of formal approval for certain expenses was unavailable.
Cause: The Organization does not have a system in place to formally document all invoice
approvals.
Possible effect: While the examined underlying expenses appear necessary and reasonable for
the performance of the federal award, there is an elevated risk of unallowable expenses being
billed to federal awards.
Recommendation: Management should implement procedures for the approval of invoices, clearly
outlining the roles and responsibilities of personnel and detailing appropriate documentation of
approvals.
Views of responsible officials:
We agree with the finding. Management does obtain approval for all invoices; however, in certain
instances, approval may be given verbally and not formally documented. We will review our current
procedures for obtaining and documenting approval and update the procedures to ensure adequate
evidence of approval is documented.