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: We noted no evidence of review and approval of payroll expenses including time sheets,
payroll registers, and payroll reconciliations. Of the forty (40) employees tested, twenty three (23)
employees lacked approval by management.
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 or correct period of performance (lack of approved time sheets,
payroll registers and reconciliations).
Cause: Payroll expenses lacked approved timesheets, approved payroll registers and approved
reconciliations between budgeted payroll expenses per grant agreement and internal payroll reports.
This was due 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: None
Recommendation: We recommend that internal controls be strengthened and processes
implemented to ensure all payroll expenses include evidence of review and approval for payment.