Audit 294476

2023-001: U.S. Department of Health and Human Services, Division of Child and Family Services System of Care for Youth with Serious Emotional Disorders, 93.104 Reporting Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing 93.104 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process. Condition: Quarterly progress reports did not have evidence of review and approval by an individual independent of the preparation process. Cause: The Organization did not have adequate internal controls to ensure documented review of report. Effect: Documented review of the reports were not indicated. Questioned Costs: None reported. Context/sampling: A nonstatistical sample of two out of five quarterly progress reports were selected for testing. There was no evidence of review on either of the two reports tested. Report Finding from Prior Year(s): No. Recommendation: We recommend Community Chest, Inc. enhance the internal controls over reporting. Views of Responsible Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.

2023-002: U.S. Department of Health and Human Services, Division of Child and Family Services System of Care for Youth with Serious Emotional Disorders, 93.104 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing 93.104 on the Schedule of Expenditures of Federal Awards. Criteria: Part of the Federal Funding Accountability and Transparency Act (FFATA) requires direct recipients of certain federal awards to report subaward information by the end of the month following the month in which the prime awardee obligates a subgrant award equal to $30,000 (or $25,000 for federal agencies that have not yet adopted amendments effective November 12, 2020). Condition: Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). Cause: Community Chest, Inc. (the Organization) did not have internal controls to ensure subaward information was submitted in accordance with the FFATA. Effect: Subaward obligations were not reported in the FSRS and therefore not included on the FFATA’s website for public information disclosure. Questioned Costs: None reported. Context/sampling: The entire population of one subaward was selected for testing. Report Finding from Prior Year(s): No. Recommendation: We recommend the Department implement internal controls to ensure subaward information is submitted in accordance with the FFATA. Views of Responsible Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.

2023-003: U.S. Department of Health and Human Services, Division of Child and Family Services System of Care for Youth with Serious Emotional Disorders, 93.104 Subrecipient Monitoring Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing 93.104 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.332 requires that: Pass-through entities ensure every subaward includes certain information at the time of the subaward and the assistance listing number is communicated at the time of disbursement to subrecipients. Condition: Subawards did not contain all the required information and assistance listing numbers were not communicated at disbursement. Cause: Adequate internal controls were not in place to ensure compliance with subrecipient monitoring requirements for the following agencies: • Lyon County Human Services Effect: Noncompliance at the subrecipient level may occur and not be detected by the State. Questioned Costs: None reported. Context/sampling: The entire population of one subrecipient was selected for testing. Report Finding from Prior Year(s): No. Recommendation: We recommend the State agencies listed above enhance internal controls to ensure compliance with subrecipient monitoring requirements. Views of Responsible Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.

2023-001: U.S. Department of Health and Human Services, Division of Child and Family Services System of Care for Youth with Serious Emotional Disorders, 93.104 Reporting Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards included under assistance listing 93.104 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 provides that non-federal entities must establish and maintain effective internal control that provides reasonable assurance that the non-federal entity is managing the federal award in compliance federal statutes, regulations, and the terms and conditions of the Federal award. A key component of effective internal control is the segregation of duties through a review and approval process. Condition: Quarterly progress reports did not have evidence of review and approval by an individual independent of the preparation process. Cause: The Organization did not have adequate internal controls to ensure documented review of report. Effect: Documented review of the reports were not indicated. Questioned Costs: None reported. Context/sampling: A nonstatistical sample of two out of five quarterly progress reports were selected for testing. There was no evidence of review on either of the two reports tested. Report Finding from Prior Year(s): No. Recommendation: We recommend Community Chest, Inc. enhance the internal controls over reporting. Views of Responsible Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.

2023-002: U.S. Department of Health and Human Services, Division of Child and Family Services System of Care for Youth with Serious Emotional Disorders, 93.104 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing 93.104 on the Schedule of Expenditures of Federal Awards. Criteria: Part of the Federal Funding Accountability and Transparency Act (FFATA) requires direct recipients of certain federal awards to report subaward information by the end of the month following the month in which the prime awardee obligates a subgrant award equal to $30,000 (or $25,000 for federal agencies that have not yet adopted amendments effective November 12, 2020). Condition: Required subaward information was not reported in the FFATA Subaward Reporting System (FSRS). Cause: Community Chest, Inc. (the Organization) did not have internal controls to ensure subaward information was submitted in accordance with the FFATA. Effect: Subaward obligations were not reported in the FSRS and therefore not included on the FFATA’s website for public information disclosure. Questioned Costs: None reported. Context/sampling: The entire population of one subaward was selected for testing. Report Finding from Prior Year(s): No. Recommendation: We recommend the Department implement internal controls to ensure subaward information is submitted in accordance with the FFATA. Views of Responsible Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.

2023-003: U.S. Department of Health and Human Services, Division of Child and Family Services System of Care for Youth with Serious Emotional Disorders, 93.104 Subrecipient Monitoring Material Weakness in Internal Control over Compliance and Material Noncompliance Grant Award Number: Affects all grant awards included under assistance listing 93.104 on the Schedule of Expenditures of Federal Awards. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.332 requires that: Pass-through entities ensure every subaward includes certain information at the time of the subaward and the assistance listing number is communicated at the time of disbursement to subrecipients. Condition: Subawards did not contain all the required information and assistance listing numbers were not communicated at disbursement. Cause: Adequate internal controls were not in place to ensure compliance with subrecipient monitoring requirements for the following agencies: • Lyon County Human Services Effect: Noncompliance at the subrecipient level may occur and not be detected by the State. Questioned Costs: None reported. Context/sampling: The entire population of one subrecipient was selected for testing. Report Finding from Prior Year(s): No. Recommendation: We recommend the State agencies listed above enhance internal controls to ensure compliance with subrecipient monitoring requirements. Views of Responsible Officials: Community Chest, Inc. agrees with this finding; see corrective action plan.