Finding 498110 (2020-009)

Material Weakness Repeat Finding
Requirement
H
Questioned Costs
$1
Year
2023
Accepted
2024-09-24

AI Summary

  • Core Issue: The Organization failed to maintain necessary documentation for non-payroll expenses, impacting compliance with federal funding requirements.
  • Impacted Requirements: Non-compliance with 2 CFR Sections 200.303(a), 200.308, 200.309, and 200.403(h) regarding internal controls and allowable costs.
  • Recommended Follow-Up: Strengthen internal controls and implement processes to ensure all expenses are supported by proper documentation and align with the approved budget period.

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, under 2 CFR sections 200.308 200.309 and 200.403(h)), the Organization may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass‐through entity made the federal award that were authorized by the federal awarding agency or pass‐through entity. Condition: The Organization lacked supporting documentation for non‐payroll expenses. Due to lack of supporting documentation, period of performance could not be verified. Of the sixty (60) nonpayroll transactions examined, ten (10) lacked supporting documentation for review, and 1 expense was for services performed in a prior period. Effect: Management possibly did not expend funds in accordance with the approved detailed lineitem budget and grant agreement and possibly expended funds in the incorrect period of performance. 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 $7,674 and likely questioned costs of $34,117 for Healthy Start. Recommendation: We recommend that internal controls be strengthened and processes implemented to ensure all expenses include supporting documentation/invoice indicating period of performance.

Categories

Questioned Costs Internal Control / Segregation of Duties Allowable Costs / Cost Principles Period of Performance

Other Findings in this Audit

  • 498102 2020-007
    Significant Deficiency Repeat
  • 498103 2020-008
    Material Weakness Repeat
  • 498104 2020-009
    Material Weakness Repeat
  • 498105 2020-010
    Material Weakness Repeat
  • 498106 2020-011
    Significant Deficiency Repeat
  • 498107 2020-012
    Material Weakness Repeat
  • 498108 2020-007
    Significant Deficiency Repeat
  • 498109 2020-008
    Material Weakness Repeat
  • 498111 2020-010
    Material Weakness Repeat
  • 498112 2020-011
    Significant Deficiency Repeat
  • 498113 2020-012
    Material Weakness Repeat
  • 1074544 2020-007
    Significant Deficiency Repeat
  • 1074545 2020-008
    Material Weakness Repeat
  • 1074546 2020-009
    Material Weakness Repeat
  • 1074547 2020-010
    Material Weakness Repeat
  • 1074548 2020-011
    Significant Deficiency Repeat
  • 1074549 2020-012
    Material Weakness Repeat
  • 1074550 2020-007
    Significant Deficiency Repeat
  • 1074551 2020-008
    Material Weakness Repeat
  • 1074552 2020-009
    Material Weakness Repeat
  • 1074553 2020-010
    Material Weakness Repeat
  • 1074554 2020-011
    Significant Deficiency Repeat
  • 1074555 2020-012
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.926 Healthy Start Initiative $734,166
93.110 Maternal and Child Health Federal Consolidated Programs $28,089
14.218 Community Development Block Grants/entitlement Grants $22,413
93.426 Improving the Health of Americans Through Prevention and Management of Diabetes and Heart Disease and Stroke $4,145