Finding Text
2023-001: U.S. Department of Health and Human Services, Division of Child and Family Services
System of Care for Youth with Serious Emotional Disorders, 93.104
Reporting
Significant Deficiency in Internal Control over Compliance
Grant Award
Number: Affects all grant awards included under assistance listing 93.104 on the Schedule of Expenditures of Federal Awards.
Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process.
Condition: Quarterly progress reports did not have evidence of review and approval by an individual independent of the preparation process.
Cause: The Organization did not have adequate internal controls to ensure documented review of report.
Effect: Documented review of the reports were not indicated.
Questioned Costs: None reported.
Context/sampling: A nonstatistical sample of two out of five quarterly progress reports were selected for testing. There was no evidence of review on either of the two reports tested.
Report Finding from
Prior Year(s): No.
Recommendation: We recommend Community Chest, Inc. enhance the internal controls over reporting.
Views of Responsible
Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.