Finding Text
2023-005 Department of Health and Human Services
Passed through the State of South Dakota Department of Human Services
Special Programs for the Aging - Title III, Part C - Nutrition Services #93.045
Nutrition Services Incentive Program #93.053
Award # 24SC193061 Award Year – 2024
Award # 23SC193061 Award Year – 2023
Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Significant Deficiency in Internal Controls over Compliance
Criteria: A good internal control structure would require documented review to be completed prior to invoice payments being made to ensure all costs incurred were allowed under the program.
Condition: In testing, it was noted that 3 invoices that were paid with electronic payment were not approved prior to payment being made.
Cause: With payments made by electronic payments only, there was not documentation maintained to show approval of the expenses.
Effect: Costs can be paid that are not allowed under the program.
Questioned Costs: None
Context/Sampling: Nonstatistical sampling was used. Sample size was 3 of 60 transactions.
Repeat Finding from Prior Year(s): No
Recommendation: We recommend a documented approval process be implemented prior to all payments being made to ensure that costs were allowed under the program.
Views of Responsible Officials: Management agrees with the finding.