Audit 398814

Agency: All Assistance Listing Number and State ID: All Programs: All Statement of Condition: The Organization's controls did not detect that reimbursement was received for the same expenditure in the prior and the current grant period. Criteria: Organizations are responsible for designing, implementing and maintaining internal control over compliance for allowable costs. Questioned Costs: See finding 2025-02. Context: The Organization had an instance of noncompliance with allowable costs and the controls in place did not detect the error. Effect: Noncompliance with allowable costs went undetected due to a lack of effective controls over voided and reissued checks. Cause: The Organization voided and reissued a check. Due to this an expense was reimbursed by a government agency in two fiscal years. Although the amount was not material current controls did not detect the error which led to noncompliance. Recommendation: We recommend management review their controls surrounding allowable costs, specifically in instances when expenses are voided and rebooked. This will ensure expenditures are charged to grants in the effective grant period. Management's Response: Management reviewed this instance and performed a detailed analysis of our internal controls, procedures and other like transactions. Management concluded that it was an isolated incident that occurred due to the timing and processing of the voided transaction and the transition to a new grant year. Vivent Health has implemented additional controls including dual review of grant year-to-date expenditures and system and reporting enhancements that will identify and prevent changes related to prior periods