Finding Text
2022-004 Period of Performance
Federal Agency: U.S. Department of Health and Human Services
Federal Program Title: Child Care and Development Block Grant
Assistance Listing Number: 93.575
Award Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria: Costs charged to the grant must be incurred within the period of performance in accordance with 2 CFR section 200.1.
Condition: Documentation was not properly maintained to support time and effort for payroll amounts charged to the grant. Additionally, documentation to support approval of general disbursements was not maintained.
Context: Twenty-seven out of sixty-five transactions lacked appropriate documentation or approval to
substantiate that the expenditures were incurred within the authorized period of performance for the grant.
Ten out of twenty payroll disbursements tested for performance period beginning dates during audit period did not have proper evidence to support amounts that were not charged prior to the beginning of the performance period.
Questioned Costs: None over $25,000
Cause: Internal controls surrounding allocations were not properly designed and implemented and an audit trail for allocation journal entries/source documentation was not maintained
.
Effect: The lack of evidence for audit trail and lack of effective internal controls over allocations provides
an opportunity for noncompliance and errors.
Repeat Finding: No
Recommendation: We recommend that the Organization design, implement and monitor internal controls over allocations as well as maintain source documentation to support amounts charged to the grant.
Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.