Office of the Legislative Auditor - Financial Audit Division

Report Summary
Department of Health
Internal Control and Compliance Audit

 

Financial Audit Division Report 13-13

Released June 28, 2013

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Conclusion

The Department of Health’s internal controls over grants were generally adequate to ensure that it accurately reimbursed grant recipients for allowable grant expenditures in accordance with management’s authorizations and finance-related legal provisions and accurately recorded these expenditures in the state’s accounting systems. For items tested, the Department of Health generally complied with finance-related legal provisions. However, the department had some internal control weaknesses and noncompliance related to grant monitoring procedures.

Findings

• The Department of Health overpaid approximately $38,000 to several grantees.

• The Department of Health did not always comply with state and department grant policies to ensure that it adequately monitored grantees.
• The Department of Health paid grantees for costs that were unallowable because the grantee incurred the costs before the start of the grant period.
• The Department of Health miscategorized certain grant transactions in the state's accounting system.

Audit Objectives and Scope

Objectives	Period Audited
Internal Controls Legal Compliance	July 1, 2010, through December 31, 2012
Programs Audited
Administration and oversight of grants