Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Foster Care Title IV-E & Stephanie Tubbs Jones Child Welfare Services Program Assistance Listing Numbers: 93.658 & 93.645 Federal Award Identification Number and Year: 21-20016 (2023) & 21-20017 (2023) Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Compliance- Cash Management Criteria: Accurate invoices need to be prepared using actual expenses incurred, reviewed, and submitted to funders. This process is vital in order to accurately state the Organization's revenue internal control to ensure there are no material misstatements contained within the financial statements. Condition: During our testing of cash management invoices, it was noted that invoices were not being approved before submission. Also, it was noted that the invoices did not align with actual expenses incurred, leading to an overbilling at year end. Questioned Costs: $148,466 Context: It was noting through testing of cash management invoices that all 8 invoices tested did not have proper approvals noted before submission and that the invoices did not align with the actual expenses incurred. Cause: Lack of internal control process. Effect: It was noted that in total $401,621 was overbilled to the pass-through funder, representing an allocated amount of $148,466 in federal funds. The total amount of $401,621 needed to be deferred as of June 30, 2023. Repeat Finding: No Recommendation: We recommend that management ensure that all invoices are based on actual expenses incurred and that there is a review and approval process of invoices before submission. Views of Responsible Officials: Please refer to NET Treatment Services, Inc., dba: NET Community Care’s Corrective Action Plan.