Audit 370443

Audit Finding Reference: 2022-003 Request for Reimbursement (RFR) – Material Weakness U.S. Department of Health and Human Services Passed through the Nevada Department of Health and Human Services COVID-19 Activities to Support State, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises – Assistance Listing Number #93.391 Grant Period: 6/1/22 through 5/31/23 Compliance Requirement: L (Reporting) Condition: An accounting error occurred related to the preparation of ACCEPT’s December 14, 2022 Request for Reimbursement (RFR). This error consisted of the duplication of expense totaling $26,736, which resulted in an excess reimbursement to ACCEPT of that amount on February 13, 2023. The expenses were primarily associated with consulting fees for subgrantees. Criteria: Costs submitted for reimbursement must be in accordance with generally accepted accounting principles (GAAP); be accorded consistent treatment; and, be adequately documented. Cause: While procedures exist for supervisory approval of the District’s submission of Requests for Reimbursement (RFR), the turnover in key positions resulted in difficulties preparing timely and accurate RFRs. Effect: The portion of the reimbursement attributable to the accounting error was disallowed. The RFR was submitted on December 14, 2022 for expenditures incurred for the period ended December 31, 2022, as follows: Adjusted expenses per ACCEPT’s accounting records $57,934 RFR #1-7 dated December 14, 2022; paid on February 13, 2023 84,670 Overpayment (26,736) Repaid to State 26,736 Questioned Cost $ 0 Recommendation: ACCEPT should verify the accuracy of all RFRs prior to submission for reimbursement. Additionally, as discussed in Finding 2022-004, ACCEPT should comply with the following condition of award: Questioned Cost: $0. Planned Corrective Action: The Quality Management Director and Executive Director have worked together to create a process with appropriate checks and balances regarding moving expense across individual grants and major funds. This process will consist of multiple levels of approval and specific documentation. Any entries will be processed in a timely manner and all expenditure reports will be checked for errors monthly. This process will ensure that expenditure reports are accurate at the time they are submitted for reimbursement. Name of Contact Person: Gwen Taylor, Executive Director

Audit Finding Reference: 2022-004 Request for Reimbursement (RFR) – Significant Deficiency U.S. Department of Health and Human Services Passed through the Nevada Department of Health and Human Services COVID-19 Activities to Support State, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises – Assistance Listing Number #93.391 Grant Period: 6/1/22 through 5/31/23 Compliance Requirement: L (Reporting) Condition: Request for Reimbursement (RFR) were not submitted on a timely basis. Criteria: The grant award notifications for several of ACCEPT’s grants included the following condition of award: The recipient agrees that Request for Reimbursement (RFR) must be submitted by the 15th of each month for expenditures incurred in previous month. Cause: This was due to turnover in key personnel responsible for the preparation, approval, and submission of RFRs precluded timely submission. Effect: ACCEPT advanced funds from general use resources to cover the expenditures related to several of its most significant grants. Context: RFRs for the programs reported in this finding and which were deemed to not be timely were as follows: RFR amount/date $33,168 submitted July 18, 2022. Recommendation: The District should implement proper controls to ensure compliance with the conditions of the grant awards regarding submission of the RFR. No Questioned cost. Planned Corrective Action: ACCEPT was approved by the Nevada Department of Public and Behavioral Health to submit RFRs as soon as possible in FY22. ACCEPT has followed this approval and submitted all requests by the 15th day of the month following the aforementioned month. Name of Contact Person: Gwen Taylor, Executive Director