Finding 946682 (2023-002)

Federal Agency: Department of Health and Human Services Federal Program Name: Chafee Education and Training Vouchers Program Assistance Listing Number: 93.599 Pass-Through Agency: MN Dept. of Human Services Pass-Through Number: GRK%157729 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR 200.303 requires that non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: During our audit testing, we noted that there was not evidence of an internal control (supervisor approval of time and effort charged to the federal grant) for some transactions. Context: We tested 12 payroll time and effort reports. We were provided documentation supporting the time charged to the grant, but there was not evidence of a supervisory review on 6 of the reports. Cause: Time and effort reports were reviewed by a supervisor, who then sent to an email inbox once they approved. We were able to view the email approvals for recent time periods, however, emails were deleted in the system after six months so we were unable to view the approval from earlier in the year. Effect: Internal controls were not properly documented. Repeat finding: Not a repeat finding Recommendation: We recommend the Organization put procedures in place to retain documentation of supervisory approval of time and effort reports. Views of responsible officials: There is no disagreement with the audit finding.