Finding 522754 (2024-002)

Allowable Costs/Activities Allowed – Approval of Invoices Funding Agency: U.S. Department of Health and Human Services Pass-through from Georgia Department of Behavioral Health and Developmental Disabilities Grant: Block Grants for Prevention and Treatment of Substance Abuse Assistance Listing Number: 93.959 and Funding Agency: U.S. Department of Health and Human Services Pass-through from Georgia Department of Behavioral Health and Developmental Disabilities Grant: Social Services Block Grant Assistance Listing Number: 93.667 Type of Finding: Significant Deficiency over Internal Control over Compliance. Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal awards that provides assurance that the entity is managing the federal awards in compliance with federal statutes, regulations and conditions of the federal awards. Condition: During our testing, we noted invoices that lacked proper review documentation. Context: Of the 50 selections we tested across both major federal programs, we noted 23 did not have evidence of review and approval. Effect: Costs could be charged to federal programs which are unallowed due to lack of review by appropriate personnel. The Organization also had turnover in the accounting department. Cause: The Organization did not follow its fiscal policies and procedures on obtaining invoice approval. Recommendation: Management should ensure it is following its fiscal policies and procedures on invoice approval. Grantee Comment: Refer to Corrective Action Plan