Finding 974383 (2022-002)

Finding 2022-002, Adherence and Application of Policies and Procedures for Financial Management - 2021-003 Repeat Finding Federal Agency: U.S. Department of Health and Human Services Program Name: Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security Assistance Listing #: 93.318 Questioned Costs: None Condition/Context We tested a sample of forty transactions for Activities Allowable Cost/Cost Principles. Thirty-one transactions selected for testing did not have evidence that they were approved by upper management. In addition, one transaction had an error in payment, and three transactions were not supported by appropriate documentation. Criteria Per the Organization's Policies and Procedures for Financial Management, upper managemen is responsible for the approval of invoices after they have been reviewed by the individual who procured them. Cause The Organization did not adhere to its Policies and Procedures for Financial Management. Effect Non-adherence and inconsistent application of established policies and procedures did not detect errors on a timely matter. Recommendation We recommend that the Organization adheres to its Policies and Procedures for Financial Management by ensuring expendiures are reviewed and approved by upper management. Organization's Management Response See corrective action plan.