Audit 35599

2022-002 Allowable Costs ? Material Weakness Federal Program ? Victims of Crimes Act (VOCA) CFDA 16-575 Pass-through Entity - State of Florida Office of the Attorney General Federal Agency - Department of Justice Criteria: 2 CFR 200.303 states a non-Federal entity must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. VOCA funds provide reimbursement assistance to Hibiscus for services provided to the victims of crimes that are not otherwise paid. In accordance with 2 CFR 200.403, costs must be adequately documented as well as necessary and reasonable for the performance of the federal award. Condition: Auditor tested 4 of the 12 months of services provided and noted no controls related to the verification of the employees time spent working under this grant. Amounts billed were directly related to the budgeted amounts. Auditor reviewed eCR billing system and timesheets maintained by the providers for billing and payroll processes and noted no controls were implemented to allow for quantification of the time spent with VOCA clients. The program director was listed as the provider in eCR in many instances when she was not, and time sheets are not maintained to allow for proper breakdown of providers time spent on each client. This condition could lead to a potential misstatement of the financial statements. Questioned Costs: Likely estimated questioned costs from $80,000-$166,000. Cause: During the preliminary review of the VOCA grant, auditor noted VOCA had changed the way reimbursements were paid; in prior years VOCA disbursed grant funds based on a fee for service, and during the current audit period changed to grant funds being disbursed based on actual salaries paid. Management did not have a full understanding of the change. Effect: Potential unallowable costs. Recommendation: We recommend Hibiscus implement and monitor the time value related to the services provided under the VOCA grant. Additionally, the appropriate provider should be selected in eCR and appropriate detailed time sheets maintained for the VOCA providers. Billings should be then created based on actual time spent of the providers working with VOCA clients. Management Response: Hibiscus is using eCR data verifying time value related services based on VOCA allowable cost. In addition, updates were made on time sheet for providers detailing actual percentage of services. Cost reimbursements submitted were reviewed, verified, and approved by VOCA.

2022-002 Allowable Costs ? Material Weakness Federal Program ? Victims of Crimes Act (VOCA) CFDA 16-575 Pass-through Entity - State of Florida Office of the Attorney General Federal Agency - Department of Justice Criteria: 2 CFR 200.303 states a non-Federal entity must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. VOCA funds provide reimbursement assistance to Hibiscus for services provided to the victims of crimes that are not otherwise paid. In accordance with 2 CFR 200.403, costs must be adequately documented as well as necessary and reasonable for the performance of the federal award. Condition: Auditor tested 4 of the 12 months of services provided and noted no controls related to the verification of the employees time spent working under this grant. Amounts billed were directly related to the budgeted amounts. Auditor reviewed eCR billing system and timesheets maintained by the providers for billing and payroll processes and noted no controls were implemented to allow for quantification of the time spent with VOCA clients. The program director was listed as the provider in eCR in many instances when she was not, and time sheets are not maintained to allow for proper breakdown of providers time spent on each client. This condition could lead to a potential misstatement of the financial statements. Questioned Costs: Likely estimated questioned costs from $80,000-$166,000. Cause: During the preliminary review of the VOCA grant, auditor noted VOCA had changed the way reimbursements were paid; in prior years VOCA disbursed grant funds based on a fee for service, and during the current audit period changed to grant funds being disbursed based on actual salaries paid. Management did not have a full understanding of the change. Effect: Potential unallowable costs. Recommendation: We recommend Hibiscus implement and monitor the time value related to the services provided under the VOCA grant. Additionally, the appropriate provider should be selected in eCR and appropriate detailed time sheets maintained for the VOCA providers. Billings should be then created based on actual time spent of the providers working with VOCA clients. Management Response: Hibiscus is using eCR data verifying time value related services based on VOCA allowable cost. In addition, updates were made on time sheet for providers detailing actual percentage of services. Cost reimbursements submitted were reviewed, verified, and approved by VOCA.