Finding Text
Federal Program Information:
Funding Agency: U.S Department of Health and Human Services
FALN: 93.926
Federal Award Identification Number: H49MC00119‐19‐00
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2018‐2020
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective
internal controls to provide reasonable assurance that the entity is managing the federal awards in
compliance with statues, regulations, and the terms and conditions of the award.
Additionally, regulations require that in order for activities and costs to be allowed under Federal
awards, 45CFR, part 75 all costs must be adequately documented.
Condition: The Organization lacked supporting documentation for non‐payroll expenses. Due to lack
of supporting documentation and evidence of approval for payment could not be verified. Of the sixty
(60) transactions examined, twelve (12) lacked supporting documentation for review, and approval
for payment by a Manager.
Effect: Management possibly did not expend funds in accordance with the approved detailed lineitem
budget and grant agreement and possibly expended funds which did not contribute to the
objective set forth for the program. (lack of approved invoices, lack of supporting documentation).
Cause: Expenses including approved invoices and/or supporting documentation were not properly
maintained in part due to several changes in personnel within the accounting area and overall limited
number of personnel for certain functions and lack of board oversight.
Questioned Costs: Known questioned costs of $3,931 and likely questioned costs of $17,477 for
Healthy Start.
Recommendation: We recommend that internal controls be strengthened and processes
implemented to ensure all expenses include supporting documentation/invoice indicating nature of
expense, amount, authorization and approval for payment.