Audit 323945

Significant Deficiency – Internal Control and Compliance Criteria The Center should establish internal controls that enable management and employees to prevent, detect, and correct material misstatements on a timely basis. This includes ongoing monitoring of the accumulation of expenses for which reimbursements are requested under contractual agreements with funding agencies. Condition In testing compliance with contracts and grant agreements related to the CCBHC program, the Center was unable to provide a detailed listing of expenditures charged under the grant nor an accurate reconciliation between grant drawdowns and expenditures. As a result, total grant drawdowns exceeded expenditures by approximately $12,831. Cause The errors were due to improper internal controls over the monthly reconciliations of grant expenditures to grant budget and drawdowns. The reconciliations that were provided were incomplete and included various formula adjustments and errors, as well as amounts without accurate descriptions. Effect or Potential Effect Because of the lack of monitoring the monthly reconciliations, errors in calculating the reimbursable expenses could result in overpayment or underpayment by the funding agency. Context The Center requested reimbursement for expenses without a detailed and accurate reconciliation of the requested amounts. The adjustments included within the reconciliations may have resulted in certain allowable expenditures not being charged under the grant. The net effect of these issues did not result in a material difference between revenue and expenses for the CCBHC program. Recommendation In order to monitor the status of the CCBHC contract revenues and expenses, we recommend that the Center reconcile the general ledger accounts for CCBHC expenses to the requests for reimbursements on a monthly basis. Additionally, we recommend the reconciliation be reviewed by another employee. This will help prevent errors in reimbursement requests and will simplify future reconciliations. View of Responsible Officials See corrective action plan on page 36.

Significant Deficiency – Internal Control and Compliance Criteria The Center should establish internal controls that enable management and employees to prevent, detect, and correct material misstatements on a timely basis. This includes ongoing monitoring of the accumulation of expenses for which reimbursements are requested under contractual agreements with funding agencies. Condition In testing compliance with contracts and grant agreements related to the CCBHC program, the Center was unable to provide a detailed listing of expenditures charged under the grant nor an accurate reconciliation between grant drawdowns and expenditures. As a result, total grant drawdowns exceeded expenditures by approximately $12,831. Cause The errors were due to improper internal controls over the monthly reconciliations of grant expenditures to grant budget and drawdowns. The reconciliations that were provided were incomplete and included various formula adjustments and errors, as well as amounts without accurate descriptions. Effect or Potential Effect Because of the lack of monitoring the monthly reconciliations, errors in calculating the reimbursable expenses could result in overpayment or underpayment by the funding agency. Context The Center requested reimbursement for expenses without a detailed and accurate reconciliation of the requested amounts. The adjustments included within the reconciliations may have resulted in certain allowable expenditures not being charged under the grant. The net effect of these issues did not result in a material difference between revenue and expenses for the CCBHC program. Recommendation In order to monitor the status of the CCBHC contract revenues and expenses, we recommend that the Center reconcile the general ledger accounts for CCBHC expenses to the requests for reimbursements on a monthly basis. Additionally, we recommend the reconciliation be reviewed by another employee. This will help prevent errors in reimbursement requests and will simplify future reconciliations. View of Responsible Officials See corrective action plan on page 36.