Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: The Code of Federal Regulations Section 200 subpart E outlines the allowability of cost provisions. Specifically, 2 CFR 200.403(e) states that costs should be determined in accordance with generally accepted accounting principles.
Condition: A prepayment for a 2023 training conference was recorded as an expense of the current period and reimbursed from a grant in the federal program.
Cause: The recording of this transaction as an expense instead of a prepaid expense was because the transaction was not properly reviewed and approved.
Effect or Potential Effect: An expense charged to the federal program could be disallowed.
Context: This appears to be an isolated incident that was identified during other audit procedures. During our testing of for allowability of costs, we selected a sample of 40 expense transactions and 4 payrolls and did not identify any additional questioned costs.
Repeat Finding: No
Recommendation: Expenses should be reviewed and approved by an individual with sufficient knowledge of requirements for allowability before recording in the accounting records.
Views of Responsible Officials: Management agrees with the finding and will have staff attend additional training.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: The Code of Federal Regulations Section 200 subpart E outlines the allowability of cost provisions. Specifically, 2 CFR 200.403(e) states that costs should be determined in accordance with generally accepted accounting principles.
Condition: A prepayment for a 2023 training conference was recorded as an expense of the current period and reimbursed from a grant in the federal program.
Cause: The recording of this transaction as an expense instead of a prepaid expense was because the transaction was not properly reviewed and approved.
Effect or Potential Effect: An expense charged to the federal program could be disallowed.
Context: This appears to be an isolated incident that was identified during other audit procedures. During our testing of for allowability of costs, we selected a sample of 40 expense transactions and 4 payrolls and did not identify any additional questioned costs.
Repeat Finding: No
Recommendation: Expenses should be reviewed and approved by an individual with sufficient knowledge of requirements for allowability before recording in the accounting records.
Views of Responsible Officials: Management agrees with the finding and will have staff attend additional training.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: The Code of Federal Regulations Section 200 subpart E outlines the allowability of cost provisions. Specifically, 2 CFR 200.403(e) states that costs should be determined in accordance with generally accepted accounting principles.
Condition: A prepayment for a 2023 training conference was recorded as an expense of the current period and reimbursed from a grant in the federal program.
Cause: The recording of this transaction as an expense instead of a prepaid expense was because the transaction was not properly reviewed and approved.
Effect or Potential Effect: An expense charged to the federal program could be disallowed.
Context: This appears to be an isolated incident that was identified during other audit procedures. During our testing of for allowability of costs, we selected a sample of 40 expense transactions and 4 payrolls and did not identify any additional questioned costs.
Repeat Finding: No
Recommendation: Expenses should be reviewed and approved by an individual with sufficient knowledge of requirements for allowability before recording in the accounting records.
Views of Responsible Officials: Management agrees with the finding and will have staff attend additional training.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: Non-federal entities must establish policies and procedures to implement the requirements of 2 CFR section 200.305. Program costs must be incurred by non-federal entity before submitting a reimbursement request.
Condition: During our testing of reimbursement requests, we identified amounts that were requested for reimbursement prior to the expenses being incurred.
Cause: Sufficient internal controls for reimbursement requests have not been implemented to ensure costs have been incurred prior to requests for reimbursement.
Effect or Potential Effect: Noncompliance with cash management requirements occurred within the federal program and costs incurred could be disallowed.
Context and Questioned Costs: A sample of 6 reimbursement requests totaling $135,397 was selected for testing from a population of 10 reimbursement requests totaling $347,508. The testing found 1 reimbursement request totaling $32,073 that included $21,180 of expenses that had not been incurred as of the date of the reimbursement request.
Repeat Finding: No
Recommendation: Additional internal controls for reimbursement requests should be implemented, including having another individual outside the process review and approve reimbursement requests prior to submission or require detailed accounting expense transactions be included with reimbursement requests to ensure expenses have been incurred prior to reimbursement.
Views of Responsible Officials: Management agrees with the finding and the Organization and outsourced accounting rep will meet monthly to review cost reports and correlating invoices together before approving and submitting to the funder to ensure no invoices are submitted in advance of incurring expenses.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: Non-federal entities must establish policies and procedures to implement the requirements of 2 CFR section 200.305. Program costs must be incurred by non-federal entity before submitting a reimbursement request.
Condition: During our testing of reimbursement requests, we identified amounts that were requested for reimbursement prior to the expenses being incurred.
Cause: Sufficient internal controls for reimbursement requests have not been implemented to ensure costs have been incurred prior to requests for reimbursement.
Effect or Potential Effect: Noncompliance with cash management requirements occurred within the federal program and costs incurred could be disallowed.
Context and Questioned Costs: A sample of 6 reimbursement requests totaling $135,397 was selected for testing from a population of 10 reimbursement requests totaling $347,508. The testing found 1 reimbursement request totaling $32,073 that included $21,180 of expenses that had not been incurred as of the date of the reimbursement request.
Repeat Finding: No
Recommendation: Additional internal controls for reimbursement requests should be implemented, including having another individual outside the process review and approve reimbursement requests prior to submission or require detailed accounting expense transactions be included with reimbursement requests to ensure expenses have been incurred prior to reimbursement.
Views of Responsible Officials: Management agrees with the finding and the Organization and outsourced accounting rep will meet monthly to review cost reports and correlating invoices together before approving and submitting to the funder to ensure no invoices are submitted in advance of incurring expenses.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: Non-federal entities must establish policies and procedures to implement the requirements of 2 CFR section 200.305. Program costs must be incurred by non-federal entity before submitting a reimbursement request.
Condition: During our testing of reimbursement requests, we identified amounts that were requested for reimbursement prior to the expenses being incurred.
Cause: Sufficient internal controls for reimbursement requests have not been implemented to ensure costs have been incurred prior to requests for reimbursement.
Effect or Potential Effect: Noncompliance with cash management requirements occurred within the federal program and costs incurred could be disallowed.
Context and Questioned Costs: A sample of 6 reimbursement requests totaling $135,397 was selected for testing from a population of 10 reimbursement requests totaling $347,508. The testing found 1 reimbursement request totaling $32,073 that included $21,180 of expenses that had not been incurred as of the date of the reimbursement request.
Repeat Finding: No
Recommendation: Additional internal controls for reimbursement requests should be implemented, including having another individual outside the process review and approve reimbursement requests prior to submission or require detailed accounting expense transactions be included with reimbursement requests to ensure expenses have been incurred prior to reimbursement.
Views of Responsible Officials: Management agrees with the finding and the Organization and outsourced accounting rep will meet monthly to review cost reports and correlating invoices together before approving and submitting to the funder to ensure no invoices are submitted in advance of incurring expenses.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity (2 CFR sections 200.308 200.309 and 200.403(h)).
Condition: During our testing of reimbursement requests, we identified an invoice that included expenses outside the period of performance for a grant in the federal program.
Cause: Sufficient internal controls for reimbursement requests have not been implemented to ensure costs included for reimbursement are within the period of performance.
Effect or Potential Effect: An expense charged to the federal program could be disallowed.
Questioned Costs: $48,728.
Context: This appeared to be an isolated incident from one grant invoice that was tested during audit procedures performed on financial statement account balances. For testing period of performance requirements, we selected a sample of 20 expense transactions and did not identify any expenses charged to grants outside the period of performance.
Repeat Finding: No
Recommendation: Additional internal controls for reimbursement requests should be implemented, including having another individual outside the process review and approve reimbursement requests prior to submission or require detailed accounting expense transactions be included with reimbursement requests to ensure expenses have been incurred within the period of performance.
Views of Responsible Officials: Management agrees with the finding and the Organization and outsourced accounting rep will meet monthly to review cost reports and correlating invoices together before approving and submitting to the funder to ensure expenses submitted are within the grant performance period.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity (2 CFR sections 200.308 200.309 and 200.403(h)).
Condition: During our testing of reimbursement requests, we identified an invoice that included expenses outside the period of performance for a grant in the federal program.
Cause: Sufficient internal controls for reimbursement requests have not been implemented to ensure costs included for reimbursement are within the period of performance.
Effect or Potential Effect: An expense charged to the federal program could be disallowed.
Questioned Costs: $48,728.
Context: This appeared to be an isolated incident from one grant invoice that was tested during audit procedures performed on financial statement account balances. For testing period of performance requirements, we selected a sample of 20 expense transactions and did not identify any expenses charged to grants outside the period of performance.
Repeat Finding: No
Recommendation: Additional internal controls for reimbursement requests should be implemented, including having another individual outside the process review and approve reimbursement requests prior to submission or require detailed accounting expense transactions be included with reimbursement requests to ensure expenses have been incurred within the period of performance.
Views of Responsible Officials: Management agrees with the finding and the Organization and outsourced accounting rep will meet monthly to review cost reports and correlating invoices together before approving and submitting to the funder to ensure expenses submitted are within the grant performance period.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity (2 CFR sections 200.308 200.309 and 200.403(h)).
Condition: During our testing of reimbursement requests, we identified an invoice that included expenses outside the period of performance for a grant in the federal program.
Cause: Sufficient internal controls for reimbursement requests have not been implemented to ensure costs included for reimbursement are within the period of performance.
Effect or Potential Effect: An expense charged to the federal program could be disallowed.
Questioned Costs: $48,728.
Context: This appeared to be an isolated incident from one grant invoice that was tested during audit procedures performed on financial statement account balances. For testing period of performance requirements, we selected a sample of 20 expense transactions and did not identify any expenses charged to grants outside the period of performance.
Repeat Finding: No
Recommendation: Additional internal controls for reimbursement requests should be implemented, including having another individual outside the process review and approve reimbursement requests prior to submission or require detailed accounting expense transactions be included with reimbursement requests to ensure expenses have been incurred within the period of performance.
Views of Responsible Officials: Management agrees with the finding and the Organization and outsourced accounting rep will meet monthly to review cost reports and correlating invoices together before approving and submitting to the funder to ensure expenses submitted are within the grant performance period.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: Non-federal entities must establish policies and procedures to comply with financial reporting requirements for grants within the federal program.
Condition: During testing of required financial reports, we noted differences in the amounts of expenses reported to grantors compared to actual expenses incurred during those periods.
Cause: Sufficient internal controls for reimbursement requests have not been implemented to ensure expenses reported to grantors agrees to actual expenses incurred during the period.
Effect or Potential Effect: Noncompliance with grant reporting requirements may occur.
Context: A sample of 6 financial reports was selected for testing from a population of 10 financial reports. The testing found 1 financial report that reported expenses for the period incorrectly. In addition, we noted 2 grant reimbursement requests that reported expenses for the period incorrectly.
Repeat Finding: No
Recommendation: Additional internal controls for reimbursement requests should be implemented, including having another individual outside the process review and approve financial reports prior to submission or require detailed accounting expense transactions be included with financial reports to ensure expenses reported to grantors agree to expenses actually incurred.
Views of Responsible Officials: Management agrees with the finding and the Organization and outsourced accounting rep will meet monthly to review cost reports and correlating invoices together before approving and submitting to the funder to ensure proper expense reporting.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: Non-federal entities must establish policies and procedures to comply with financial reporting requirements for grants within the federal program.
Condition: During testing of required financial reports, we noted differences in the amounts of expenses reported to grantors compared to actual expenses incurred during those periods.
Cause: Sufficient internal controls for reimbursement requests have not been implemented to ensure expenses reported to grantors agrees to actual expenses incurred during the period.
Effect or Potential Effect: Noncompliance with grant reporting requirements may occur.
Context: A sample of 6 financial reports was selected for testing from a population of 10 financial reports. The testing found 1 financial report that reported expenses for the period incorrectly. In addition, we noted 2 grant reimbursement requests that reported expenses for the period incorrectly.
Repeat Finding: No
Recommendation: Additional internal controls for reimbursement requests should be implemented, including having another individual outside the process review and approve financial reports prior to submission or require detailed accounting expense transactions be included with financial reports to ensure expenses reported to grantors agree to expenses actually incurred.
Views of Responsible Officials: Management agrees with the finding and the Organization and outsourced accounting rep will meet monthly to review cost reports and correlating invoices together before approving and submitting to the funder to ensure proper expense reporting.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: Non-federal entities must establish policies and procedures to comply with financial reporting requirements for grants within the federal program.
Condition: During testing of required financial reports, we noted differences in the amounts of expenses reported to grantors compared to actual expenses incurred during those periods.
Cause: Sufficient internal controls for reimbursement requests have not been implemented to ensure expenses reported to grantors agrees to actual expenses incurred during the period.
Effect or Potential Effect: Noncompliance with grant reporting requirements may occur.
Context: A sample of 6 financial reports was selected for testing from a population of 10 financial reports. The testing found 1 financial report that reported expenses for the period incorrectly. In addition, we noted 2 grant reimbursement requests that reported expenses for the period incorrectly.
Repeat Finding: No
Recommendation: Additional internal controls for reimbursement requests should be implemented, including having another individual outside the process review and approve financial reports prior to submission or require detailed accounting expense transactions be included with financial reports to ensure expenses reported to grantors agree to expenses actually incurred.
Views of Responsible Officials: Management agrees with the finding and the Organization and outsourced accounting rep will meet monthly to review cost reports and correlating invoices together before approving and submitting to the funder to ensure proper expense reporting.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: The Code of Federal Regulations Section 200 subpart E outlines the allowability of cost provisions. Specifically, 2 CFR 200.403(e) states that costs should be determined in accordance with generally accepted accounting principles.
Condition: A prepayment for a 2023 training conference was recorded as an expense of the current period and reimbursed from a grant in the federal program.
Cause: The recording of this transaction as an expense instead of a prepaid expense was because the transaction was not properly reviewed and approved.
Effect or Potential Effect: An expense charged to the federal program could be disallowed.
Context: This appears to be an isolated incident that was identified during other audit procedures. During our testing of for allowability of costs, we selected a sample of 40 expense transactions and 4 payrolls and did not identify any additional questioned costs.
Repeat Finding: No
Recommendation: Expenses should be reviewed and approved by an individual with sufficient knowledge of requirements for allowability before recording in the accounting records.
Views of Responsible Officials: Management agrees with the finding and will have staff attend additional training.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: The Code of Federal Regulations Section 200 subpart E outlines the allowability of cost provisions. Specifically, 2 CFR 200.403(e) states that costs should be determined in accordance with generally accepted accounting principles.
Condition: A prepayment for a 2023 training conference was recorded as an expense of the current period and reimbursed from a grant in the federal program.
Cause: The recording of this transaction as an expense instead of a prepaid expense was because the transaction was not properly reviewed and approved.
Effect or Potential Effect: An expense charged to the federal program could be disallowed.
Context: This appears to be an isolated incident that was identified during other audit procedures. During our testing of for allowability of costs, we selected a sample of 40 expense transactions and 4 payrolls and did not identify any additional questioned costs.
Repeat Finding: No
Recommendation: Expenses should be reviewed and approved by an individual with sufficient knowledge of requirements for allowability before recording in the accounting records.
Views of Responsible Officials: Management agrees with the finding and will have staff attend additional training.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: The Code of Federal Regulations Section 200 subpart E outlines the allowability of cost provisions. Specifically, 2 CFR 200.403(e) states that costs should be determined in accordance with generally accepted accounting principles.
Condition: A prepayment for a 2023 training conference was recorded as an expense of the current period and reimbursed from a grant in the federal program.
Cause: The recording of this transaction as an expense instead of a prepaid expense was because the transaction was not properly reviewed and approved.
Effect or Potential Effect: An expense charged to the federal program could be disallowed.
Context: This appears to be an isolated incident that was identified during other audit procedures. During our testing of for allowability of costs, we selected a sample of 40 expense transactions and 4 payrolls and did not identify any additional questioned costs.
Repeat Finding: No
Recommendation: Expenses should be reviewed and approved by an individual with sufficient knowledge of requirements for allowability before recording in the accounting records.
Views of Responsible Officials: Management agrees with the finding and will have staff attend additional training.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: Non-federal entities must establish policies and procedures to implement the requirements of 2 CFR section 200.305. Program costs must be incurred by non-federal entity before submitting a reimbursement request.
Condition: During our testing of reimbursement requests, we identified amounts that were requested for reimbursement prior to the expenses being incurred.
Cause: Sufficient internal controls for reimbursement requests have not been implemented to ensure costs have been incurred prior to requests for reimbursement.
Effect or Potential Effect: Noncompliance with cash management requirements occurred within the federal program and costs incurred could be disallowed.
Context and Questioned Costs: A sample of 6 reimbursement requests totaling $135,397 was selected for testing from a population of 10 reimbursement requests totaling $347,508. The testing found 1 reimbursement request totaling $32,073 that included $21,180 of expenses that had not been incurred as of the date of the reimbursement request.
Repeat Finding: No
Recommendation: Additional internal controls for reimbursement requests should be implemented, including having another individual outside the process review and approve reimbursement requests prior to submission or require detailed accounting expense transactions be included with reimbursement requests to ensure expenses have been incurred prior to reimbursement.
Views of Responsible Officials: Management agrees with the finding and the Organization and outsourced accounting rep will meet monthly to review cost reports and correlating invoices together before approving and submitting to the funder to ensure no invoices are submitted in advance of incurring expenses.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: Non-federal entities must establish policies and procedures to implement the requirements of 2 CFR section 200.305. Program costs must be incurred by non-federal entity before submitting a reimbursement request.
Condition: During our testing of reimbursement requests, we identified amounts that were requested for reimbursement prior to the expenses being incurred.
Cause: Sufficient internal controls for reimbursement requests have not been implemented to ensure costs have been incurred prior to requests for reimbursement.
Effect or Potential Effect: Noncompliance with cash management requirements occurred within the federal program and costs incurred could be disallowed.
Context and Questioned Costs: A sample of 6 reimbursement requests totaling $135,397 was selected for testing from a population of 10 reimbursement requests totaling $347,508. The testing found 1 reimbursement request totaling $32,073 that included $21,180 of expenses that had not been incurred as of the date of the reimbursement request.
Repeat Finding: No
Recommendation: Additional internal controls for reimbursement requests should be implemented, including having another individual outside the process review and approve reimbursement requests prior to submission or require detailed accounting expense transactions be included with reimbursement requests to ensure expenses have been incurred prior to reimbursement.
Views of Responsible Officials: Management agrees with the finding and the Organization and outsourced accounting rep will meet monthly to review cost reports and correlating invoices together before approving and submitting to the funder to ensure no invoices are submitted in advance of incurring expenses.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: Non-federal entities must establish policies and procedures to implement the requirements of 2 CFR section 200.305. Program costs must be incurred by non-federal entity before submitting a reimbursement request.
Condition: During our testing of reimbursement requests, we identified amounts that were requested for reimbursement prior to the expenses being incurred.
Cause: Sufficient internal controls for reimbursement requests have not been implemented to ensure costs have been incurred prior to requests for reimbursement.
Effect or Potential Effect: Noncompliance with cash management requirements occurred within the federal program and costs incurred could be disallowed.
Context and Questioned Costs: A sample of 6 reimbursement requests totaling $135,397 was selected for testing from a population of 10 reimbursement requests totaling $347,508. The testing found 1 reimbursement request totaling $32,073 that included $21,180 of expenses that had not been incurred as of the date of the reimbursement request.
Repeat Finding: No
Recommendation: Additional internal controls for reimbursement requests should be implemented, including having another individual outside the process review and approve reimbursement requests prior to submission or require detailed accounting expense transactions be included with reimbursement requests to ensure expenses have been incurred prior to reimbursement.
Views of Responsible Officials: Management agrees with the finding and the Organization and outsourced accounting rep will meet monthly to review cost reports and correlating invoices together before approving and submitting to the funder to ensure no invoices are submitted in advance of incurring expenses.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity (2 CFR sections 200.308 200.309 and 200.403(h)).
Condition: During our testing of reimbursement requests, we identified an invoice that included expenses outside the period of performance for a grant in the federal program.
Cause: Sufficient internal controls for reimbursement requests have not been implemented to ensure costs included for reimbursement are within the period of performance.
Effect or Potential Effect: An expense charged to the federal program could be disallowed.
Questioned Costs: $48,728.
Context: This appeared to be an isolated incident from one grant invoice that was tested during audit procedures performed on financial statement account balances. For testing period of performance requirements, we selected a sample of 20 expense transactions and did not identify any expenses charged to grants outside the period of performance.
Repeat Finding: No
Recommendation: Additional internal controls for reimbursement requests should be implemented, including having another individual outside the process review and approve reimbursement requests prior to submission or require detailed accounting expense transactions be included with reimbursement requests to ensure expenses have been incurred within the period of performance.
Views of Responsible Officials: Management agrees with the finding and the Organization and outsourced accounting rep will meet monthly to review cost reports and correlating invoices together before approving and submitting to the funder to ensure expenses submitted are within the grant performance period.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity (2 CFR sections 200.308 200.309 and 200.403(h)).
Condition: During our testing of reimbursement requests, we identified an invoice that included expenses outside the period of performance for a grant in the federal program.
Cause: Sufficient internal controls for reimbursement requests have not been implemented to ensure costs included for reimbursement are within the period of performance.
Effect or Potential Effect: An expense charged to the federal program could be disallowed.
Questioned Costs: $48,728.
Context: This appeared to be an isolated incident from one grant invoice that was tested during audit procedures performed on financial statement account balances. For testing period of performance requirements, we selected a sample of 20 expense transactions and did not identify any expenses charged to grants outside the period of performance.
Repeat Finding: No
Recommendation: Additional internal controls for reimbursement requests should be implemented, including having another individual outside the process review and approve reimbursement requests prior to submission or require detailed accounting expense transactions be included with reimbursement requests to ensure expenses have been incurred within the period of performance.
Views of Responsible Officials: Management agrees with the finding and the Organization and outsourced accounting rep will meet monthly to review cost reports and correlating invoices together before approving and submitting to the funder to ensure expenses submitted are within the grant performance period.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity (2 CFR sections 200.308 200.309 and 200.403(h)).
Condition: During our testing of reimbursement requests, we identified an invoice that included expenses outside the period of performance for a grant in the federal program.
Cause: Sufficient internal controls for reimbursement requests have not been implemented to ensure costs included for reimbursement are within the period of performance.
Effect or Potential Effect: An expense charged to the federal program could be disallowed.
Questioned Costs: $48,728.
Context: This appeared to be an isolated incident from one grant invoice that was tested during audit procedures performed on financial statement account balances. For testing period of performance requirements, we selected a sample of 20 expense transactions and did not identify any expenses charged to grants outside the period of performance.
Repeat Finding: No
Recommendation: Additional internal controls for reimbursement requests should be implemented, including having another individual outside the process review and approve reimbursement requests prior to submission or require detailed accounting expense transactions be included with reimbursement requests to ensure expenses have been incurred within the period of performance.
Views of Responsible Officials: Management agrees with the finding and the Organization and outsourced accounting rep will meet monthly to review cost reports and correlating invoices together before approving and submitting to the funder to ensure expenses submitted are within the grant performance period.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: Non-federal entities must establish policies and procedures to comply with financial reporting requirements for grants within the federal program.
Condition: During testing of required financial reports, we noted differences in the amounts of expenses reported to grantors compared to actual expenses incurred during those periods.
Cause: Sufficient internal controls for reimbursement requests have not been implemented to ensure expenses reported to grantors agrees to actual expenses incurred during the period.
Effect or Potential Effect: Noncompliance with grant reporting requirements may occur.
Context: A sample of 6 financial reports was selected for testing from a population of 10 financial reports. The testing found 1 financial report that reported expenses for the period incorrectly. In addition, we noted 2 grant reimbursement requests that reported expenses for the period incorrectly.
Repeat Finding: No
Recommendation: Additional internal controls for reimbursement requests should be implemented, including having another individual outside the process review and approve financial reports prior to submission or require detailed accounting expense transactions be included with financial reports to ensure expenses reported to grantors agree to expenses actually incurred.
Views of Responsible Officials: Management agrees with the finding and the Organization and outsourced accounting rep will meet monthly to review cost reports and correlating invoices together before approving and submitting to the funder to ensure proper expense reporting.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: Non-federal entities must establish policies and procedures to comply with financial reporting requirements for grants within the federal program.
Condition: During testing of required financial reports, we noted differences in the amounts of expenses reported to grantors compared to actual expenses incurred during those periods.
Cause: Sufficient internal controls for reimbursement requests have not been implemented to ensure expenses reported to grantors agrees to actual expenses incurred during the period.
Effect or Potential Effect: Noncompliance with grant reporting requirements may occur.
Context: A sample of 6 financial reports was selected for testing from a population of 10 financial reports. The testing found 1 financial report that reported expenses for the period incorrectly. In addition, we noted 2 grant reimbursement requests that reported expenses for the period incorrectly.
Repeat Finding: No
Recommendation: Additional internal controls for reimbursement requests should be implemented, including having another individual outside the process review and approve financial reports prior to submission or require detailed accounting expense transactions be included with financial reports to ensure expenses reported to grantors agree to expenses actually incurred.
Views of Responsible Officials: Management agrees with the finding and the Organization and outsourced accounting rep will meet monthly to review cost reports and correlating invoices together before approving and submitting to the funder to ensure proper expense reporting.
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: Non-federal entities must establish policies and procedures to comply with financial reporting requirements for grants within the federal program.
Condition: During testing of required financial reports, we noted differences in the amounts of expenses reported to grantors compared to actual expenses incurred during those periods.
Cause: Sufficient internal controls for reimbursement requests have not been implemented to ensure expenses reported to grantors agrees to actual expenses incurred during the period.
Effect or Potential Effect: Noncompliance with grant reporting requirements may occur.
Context: A sample of 6 financial reports was selected for testing from a population of 10 financial reports. The testing found 1 financial report that reported expenses for the period incorrectly. In addition, we noted 2 grant reimbursement requests that reported expenses for the period incorrectly.
Repeat Finding: No
Recommendation: Additional internal controls for reimbursement requests should be implemented, including having another individual outside the process review and approve financial reports prior to submission or require detailed accounting expense transactions be included with financial reports to ensure expenses reported to grantors agree to expenses actually incurred.
Views of Responsible Officials: Management agrees with the finding and the Organization and outsourced accounting rep will meet monthly to review cost reports and correlating invoices together before approving and submitting to the funder to ensure proper expense reporting.