Finding Text
2023-002: Maintaining Invoices
Federal Departments: Department of Health and Human Services
Assistance Listing #: 93.939
Compliance and Internal Controls Material Weakness
Category of Finding – Allowable Costs/ Cost Principles
Criteria – Internal control procedures should ensure that approved invoices are maintained as documentation of allowable costs.
Condition – IPTF has an internal control process designed to obtain and maintain approved invoices for allowable costs, but the controls did not operate as designed.
Cause – IPTF faced turnover in the contract accountant position during the fiscal year. A disbursement paid around the time of this transition was missing proper supporting documentation.
Effect – Unallowable expenses could be paid by the program or expenses could be paid multiple times by accident.
Context – A nonstatistical sample of 20 transactions were selected for testing. The supporting invoice for one transaction could not be provided.
Recommendation – We recommend the procedures related to obtaining and maintaining proper documentation be reviewed with applicable employees to ensure that required documentation is maintained.
Auditee’s comments and response – IPTF hired a new contract accountant and began using bill.com to store documentation supporting all costs and to ensure the related approvals are maintained.
Responsible party for corrective action – Sharon Day, Executive Director
Repeat finding – No