Finding 497287 (2022-003)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2024-09-18

AI Summary

  • Answer: Management needs to create clear policies for reviewing disbursements.
  • Trend: Ensuring compliance with federal cost principles is crucial for financial integrity.
  • List: Implement approval processes at the right management level for all disbursements.

Finding Text

Recommendation: Management should establish policies and procedures to ensure that all disbursements are reviewed to ensure they meet federal cost principles and are approved by an appropriate level of management.

Corrective Action Plan

The organization implemented an accounts payable policy to govern disbursement activity. The previous process included informal documentation via email, which has been replaced with a more formal documentation process. The organization reviewed all prior disbursement procedures, and to mitigate any impact, it established a formalized approval policy that is reflective of the current practice.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 497285 2022-001
    Material Weakness
  • 497286 2022-002
    Significant Deficiency
  • 497288 2022-004
    Significant Deficiency
  • 497289 2022-005
    Significant Deficiency
  • 497290 2022-006
    Significant Deficiency
  • 1073727 2022-001
    Material Weakness
  • 1073728 2022-002
    Significant Deficiency
  • 1073729 2022-003
    Significant Deficiency
  • 1073730 2022-004
    Significant Deficiency
  • 1073731 2022-005
    Significant Deficiency
  • 1073732 2022-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.129 Technical and Non-Financial Assistance to Health Centers $1.62M