Cause: The County did not have an internal control process in place to ensure a secondary review and approval of eligible expenditures that were summarized from the underlying support to the final expenditure listing was documented. The summary spreadsheet was used to claim allowable costs under the federal program. In addition, the review and approval of the reports submitted to the Department of Health and Human Services for Periods 2 and 3 were not performed by someone other than the preparer of the report.

Effect: Without a secondary review and approval, there is a possibility that ineligible expenditures may be claimed under the program and the report may not be accurately completed.

Questioned Costs: None reported.

Context: Testing was performed over general and administrative expenses and healthcare related expenses, including personnel costs and certain supplies for activities allowed and unallowed and allowable costs/cost principles. A nonstatistical sample of 17 transactions totaling $129,627 out of $213,848 were tested. In addition, key line items were tested on the Period 2 and Period 3 Department of Health and Human Services special reports.

Repeat Finding from Prior Years: No

Recommendation: We recommend the County implement a control process which includes a secondary review and approval of the summarized final expenditure listing used to claim the allowable costs under the federal program and secondary review and approval of required reports to be submitted to the federal agency.

Views of Responsible Officials: Moving forward, the Finance Director and/or Administrator will review and approve the expenditures and reports prior to being submitted.