Finding 572502 (2023-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2025-08-04
Audit: 363642
Organization: Alianza Americas (IL)

AI Summary

  • Core Issue: Seven out of twenty-two transactions lacked upper management approval, violating internal policies.
  • Impacted Requirements: Compliance with the Organization’s Policies and Procedures for Financial Management is essential for proper oversight.
  • Recommended Follow-Up: Ensure all expenditures are reviewed and approved by upper management, with proper documentation in place.

Finding Text

Finding 2023-001, Adherence and Application of Policies and Procedures 2022-002, 2021-002 for Financial Management – Repeat Finding Federal Agency: U.S. Department of Health and Human Services Program Name: Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security Assistance Listing #: 93.318 Questioned Costs: None Condition/Context We tested a sample of twenty-two transactions for Activities Allowed, Allowable Cost/Cost Principles. Seven transactions selected for testing did not have evidence that they were approved by upper management. Criteria Per the Organization’s Policies and Procedures for Financial Management, upper management is responsible for the approval of invoices after they have been reviewed by the individual who procured them. Cause The Organization did not adhere to its Policies and Procedures for Financial Management. Effect The Organization did not comply with its Policies and Procedures for Financial Management. Non-adherence and inconsistent application of established policies and procedures could result in noncompliance or unallowed costs that are not detected or corrected on a timely matter. Recommendation We recommend that the Organization adheres to its Policies and Procedures for Financial Management by ensuring the review and approval of expenditures by upper management is performed and documented. Organization’s Management Response See corrective action plan.

Corrective Action Plan

Finding 2023-001 Adherence and Application of Fiscal and Accounting Policies and Procedures – Repeat Finding Federal Agency: U.S. Department of Health and Human Services Program Name: Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security Assistance Listing #: 93.318 Questioned Costs: None Corrective Action: We agree with the auditor’s comments and the recommended actions. The Organization recognizes the importance of consistent adherence to its established Financial Management Policies and Procedures, specifically related to the required approval of expenditures by upper management. To address this finding and prevent recurrence, Alianza Americas will implement the following corrective actions: ● Policy Reinforcement: Revise and redistribute the organization’s Financial Management Policies and Procedures manual to all staff involved in the review, processing, or approval of financial transactions. ● Training: Conduct mandatory refresher training for all staff involved in the review, processing, or approval of financial transactions by July 31, 2025. ● Controls and Compliance Checks: Developed and implemented a financial transaction spreadsheet to ensure that all required approvals are obtained before processing. Finance staff have been instructed to reject any incomplete or non-compliant documentation. ● Monitoring and Oversight: Monthly internal audits will be conducted by the Associate Director of Operations to verify compliance and address any discrepancies proactively. These measures will ensure that expenditures are reviewed and approved in accordance with policy, and that proper documentation is maintained for all financial transactions. Contact Person: Dulce Guzmán, Executive Director Anticipated Completion Date: July 31, 2025

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 572503 2023-002
    Material Weakness Repeat
  • 1148944 2023-001
    Significant Deficiency Repeat
  • 1148945 2023-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.318 Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security $1.28M
32.011 Affordable Connectivity Outreach Grant Program $79,911