Finding Text
Finding 2024-004
U.S. Department of Health and Human Services
Program Title: Global AIDS
Assistance Listing Number: 93.067
Federal Award Year: 2023-2024
Type of Finding: Allowable Costs – Internal Control (Significant Deficiency)
Criteria:
The 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. The internal control system will include reviews of expenses charged to federal awards to verify that the expenses charged are both allowable costs and allowable activities. These reviews should be documented by an approval noted on the supporting documentation for the specific expenditure.
Context:
During our audit, we sampled both payroll and non-payroll transactions from the country offices of the Organization. We noted that the Organization was unable to provide sufficient documentation to demonstrate that it had performed the required ongoing review and approval of expenses charged to the grant. The absence of such documentation indicates that the Organization did not fully comply with the federal requirements for internal controls over allowable costs and allowable activities.
Condition:
During our testing, we selected 40 payroll and 40 non-payroll transactions for testing. In our testing over payroll transactions, we noted that there were two (2) transactions in which the Organization was unable to provide evidence of a review and approval of the transaction. In our testing over non-payroll transactions, we noted that there was one (1) transaction in which the Organization was unable to provide evidence of a review and approval of the transaction.
Cause and Effect:
The Organization is not able at access supporting documentation due to political and social conditions in the countries where the Organization operates.
Questioned Costs:
None to report.
Identified as a Repeat Finding:
No.
Recommendation:
The Organization should ensure that headquarters staff have access to all supporting documentation for expenses charged to federal grants.