Finding Text
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statues, regulations, and conditions of the federal award.
Condition: During our testing, we noted there was a lack of supporting documentation for certain expenses as well as a lack of review of invoices.
Questioned Costs: Assistance Listing 93.958, Block Grants for Community Mental Health Services: $83,374. Assistance Listing 93.676, Unaccompanied Children Program: $70,990
Context: During our review of charges to the Block Grants for Community Mental Health Services program (Assistance Listing No. 93.958), we selected a sample of 60 expense transactions were tested for Activities Allowed or Unallowed, allowable Costs/cost Principles and 19 expense transactions totaling $83,374 did not have proper documentation to support the expense being charged to the grant whether it was a missing invoice, or the invoice did not support the grant purpose. .
During our review of charges to the Unaccompanied Children Program (Assistance Listing number 93.676), we selected a sample of 60 expense transactions were tested for Activities Allowed or Unallowed, allowable Costs/cost Principles and 37 expense transaction did not have proper documentation to support the expense being charged to the grant whether it was a missing invoice, or the invoice did not support the grant purpose.
Cause: There is not a formal process to ensure all expenditures are documented, maintained, and properly reviewed. The Organization experience turnover in multiple positions in finance during the year which caused the process for filing and maintaining documentation not to be consistent.
Effect: For transactions related to federal grants, without the appropriate supporting documentation, charges may be disallowed.
Recommendation: We recommend that management establish controls and implement policies to ensure that support is obtained and maintained for all expense transactions.
Grantee Comment: Refer to the Correction Action Plan