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
Preparation of Schedule of Expenditures of Federal Awards
Material Weakness in Internal Control over Compliance
Criteria: Proper controls over financial reporting include the ability to prepare the schedule of
expenditures of federal awards (Schedule) and accompanying notes to the Schedule.
Condition: The Organization does not have an internal control system designed to provide for
the preparation of the Schedule.Cause: The Organization has limited staffing and did not have proper controls in place relating to
the Schedule.
Effect: There is a reasonable possibility that the Organization would not be able to draft the
Schedule that is correct without the assistance of auditors.
Questioned Costs: None reported.
Context: Sampling was not used.
Repeat Finding from Prior Years: No
Recommendation: While we recognized that this condition is not unusual for an organization
with limited staffing, we recommend management be aware of the financial reporting
requirements relating to the Organization’s schedule of expenditures of federal awards and the
internal controls that impact financial reporting.
Views of Responsible Officials: Management agrees with the finding.