Finding 969710 (2023-003)

2023-003 – Material Weakness in Internal Control Over Major Federal Programs Program Information: Federal Agency: U.S. Department of Health and Human Services (passed through Nebraska Department of Health and Human Services) Federal Program Title: Special Programs for the Aging Cluster (AL #93.044 Title IIIB-Grants for Supportive Services and Senior Centers, AL #93.045 COVID-19-Title III C-1, C-2-Nutrition Services, AL #93.045 Title III C-1, C-2-Nutrition Services, AL #93.053 Nutrition Services Incentive Program) Grant Award Period: July 1, 2022 through June 30, 2023 Condition: Adequate controls were not in place to ensure the Organization properly tracked expense allocation by program. As a result, expenses have been allocated incorrectly to programs. Criteria: Management is responsible for establishing adequate internal controls to ensure expenses are allocated correctly by program. Cause: The Organization does not have adequate internal controls over proper expense allocation by program. Effect: Because of the lack of proper expense allocation by program, expenses have been allocated incorrectly to programs for two of the forty transactions sampled. Recommendations: We recommend management implement adequate internal controls to ensure allowable expenses are allocated correctly to programs. Management should also review cost allocation plan methods to be sure they are in accordance with the requirements of the Uniform Guidance and implement adequate internal controls to ensure the correct cost allocation is used. View of Responsible Officials and Planned Corrective Actions: The Organization is committed to properly tracking and allocating Federal expenditures. The Organization has created adequate internal control processes to ensure expenses are allocated correctly and in accordance with the requirements of the Uniform Guidance.