Finding Text
Finding Number 2023-005: Contract Requirement – Reporting (Significant Deficiency over Internal Control
and Instances of Noncompliance – Reporting) FALN Number 93.959 Block Grants for Prevention and Treatment of Substance Abuse, Award Number 900077, Award Year 2022-2023
Criteria: 2023 Compliance Supplement and 2 CFR 200.303(a) stated that the non-Federal entity must establish
and maintain effective internal control 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 terms and
conditions of the federal award.
Condition/Context: As a result of our audit procedures, we noted management did not have evidence to support
its compliance with the program contract’s Third-Quarter Financial Report and the Quarterly Program Report
requirements.
Repeat Finding from Prior Year(s): No
Cause and Effect: The Health System did not have proper controls in place to ensure the required reports are
properly prepared, reviewed and submitted timely.
Questioned Cost: None
Recommendation: We recommend management implement policies and procedures to clearly identify all
reporting requirements of the program to ensure all reports are prepared accurately and submitted timely.
Views of Responsible Officials and Planned Corrective Action:
Management agrees with the finding. The Health System will review, modify, and implement policies and
procedures over the program to ensure that required reports are prepared and reviewed by separate individuals.
Documentation will be maintained by the program to evidence preparation and review processes and timely filing
of required reports.