Finding Text
2023-003 U.S. Department of Health and Human Services
Passed Through Utah Department of Workforce Services
Community Services Block Grant - Federal Financial Assistance Listing Number 93.569
Activities Allowed or Allowable
Allowable Costs/Cost Principles
Material Weakness in Internal Control over Compliance
Grant Award Number:
Affects all grant awards included under the Federal Financial Assistance Listing Number 93.569 on the Schedule of Expenditures of Federal Awards.
Criteria:
2 CFR Part 200 (Uniform Guidance) and the Compliance Supplement requires the Organization to incur expenses only for qualified costs.
Condition:
During our engagement, we identified 16 instances where the Organization could not provide documentation of the review and approval of non-payroll expenses prior to payment.
Cause:
The Organization did not have adequate controls to document the review and approval of qualified invoices prior to payment.
Effect:
Without clear documentation of approval, there is an increased risk of fraud or payments for ineligible program costs.
Questioned Costs:
None
Context/Sampling:
We selected 40 transactions for payroll and non-payroll expenditures in the CSBG program.
Repeat finding from the Prior Year(s):
No
Recommendation:
We recommend the Organization enhance controls to ensure that documentation of the review and approval of qualified expenses is properly maintained.
Views of Responsible Officials:
Management agrees with the finding.