Finding Text
U.S. Department of Health and Human Services Passed through Health Research &
Educational Trust (HRET), Federal Financial Assistance Listing #93.318, 87728, Protecting and
Improving Health Globally: Building and Strengthening Public Health Impact, Systems,
Capacity and Security
Activities Allowed or Unallowed, Allowable Costs/Cost Principles
Material Weakness in Internal Control over Compliance
Criteria: As per 2 CFR section 200, a complete system of internal controls requires all
expenditures be properly approved and supported by appropriate documentation.
Condition: The Organization did not maintain documentation for the proper review and approval
of expenditures for all expenditures.
Cause: The Organization has limited staffing and did not have proper controls in place relating to
review and approval of expenditures.
Effect: Improper expenses may be paid and charged to the federal program or charged/released
at the wrong amount.
Questioned Costs: None reported.
Context: A nonstatistical sample of 60 transactions out of 250+ total transactions were selected
for testing direct costs, which accounted for $508,488 of $1,049,535 direct costs. There was no
support for review and approval for 11 of the 60 tested. A nonstatistical sample of 4 out of 12
total monthly indirect calculations were selected for testing indirect costs, which accounted for
$17,667 of $46,613 indirect costs. All 4 calculations did not have support for the review and
approval.
Repeat Finding from Prior Years: No
Recommendation: We recommend the Organization implement a control process which includes
a review and approval of expenditures.
Views of Responsible Officials: Management agrees with the finding.