Finding Text
2023-010 Controls Over Expenses Assistance Listing Number: 93.958
Name of Program and Cluster: Block Grants for Community Mental Health Services Agency: U.S. Department of Health and Human Services
Allowable Cost Principles Significant Deficiency
Condition: Expenses related to federal expenditures were not approved.
Criteria: Per the Organization’s fiscal policies, purchase orders/credit card payments or cash payment forms are signed by supervisor and CFO noting approval of expenses. Payroll registers are signed as reviewed and approved by CFO.
Context: Six out of sixty expenses tested related to the Community Block Grant for WFMT had no approval noted. Twelve out of thirteen payroll registers tested were reprinted and signatures were back dated during fieldwork. Two out of nineteen expenses related to the Community Block Grant for Vaccine Education did not have approvals.
Cause: An effective system of internal control has not been designed or implemented. Effect: Expenses and payroll were not documented as reviewed and approved.
Recommendation: RBT recommends updating fiscal policies and procedures to reflect current procedures and reviewing controls to ensure they provide assurance that expenses are recorded timely, accurately, and allocated appropriately. Documentation of approvals should be maintained.