Finding 1078270 (2023-003)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-10-07
Audit: 323929
Organization: Cadence Care Network (OH)
Auditor: Packer Thomas

AI Summary

  • Core Issue: Missing documentation for allowable expenses, specifically a lease agreement for a Bridges participant.
  • Impacted Requirements: Compliance with federal award documentation standards is not being met due to delays in obtaining lease agreements.
  • Recommended Follow-Up: Management should ensure all lease agreements are routinely filed and accessible, with a new system in place to verify documentation before processing payments.

Finding Text

DOCUMENTATION OF ALLOWABLE EXPENSES. STATEMENT OF CRITERIA: MANAGEMENT IS REPONSIBLE FOR MAINTAINING DOCUMENTATION TO SUPPORT COMPLIANCE WITH ALLOWABLE EXPENDITURES PER APPLICABLE FEDERAL AWARDS. STATEMENT OF CONDITION: THE ORGANIZATION COULD NOT PROVIDE DOCUMENTATION , SPECIFICALLY A LEASE AGREEMENT TO SUPPORT COSTS CHARGED TO THE FEDERAL AWARD FOR A BRIDGES PARTICIPANT SELECTED FOR COMPLIANCE TESTING. STATEMENT OF CAUSE: LEASE AGREEMENTS FOR BRIDGES PARTICIPANTS ARE BETWEEN THE BRIDGES PARTICIPANT AND THE LANDLORD. DUE TO THE SEVERITY OF THE CLIENT POPULATION'S BEHAVIORAL HEALTH ISSUES , OFTEN THEY ARE RELUCTANT TO READILY PROVIDE DOCUMENTATION OF LEASE AGREEMENTS IN A TIMELY FASHION. THE LEASE WAS NOT PROPERLY FILED AS A RESULT. STATEMENT OF EFFECT: THE MONTHLY LEASE EXPENSE FOR ONE OF THE BRIDGES PARTICIPANTS COULD NOT BE VERIFIED WITH THE APPLICABLE LEASE AGREEMENT. RECOMMENDATION: MANAGEMENT SHOULD ROUTINELY FILE ALL LEASE AGREEMENTS FOR BRIDGES PARTICIPANTS TO ENSURE PROPER COMPLIANCE OVER BRIDGES REPORTING. MANAGEMENT RESPONSE: THE CFO HAS SET UP A SYSTEM WITHIN OUR LOCAL SHAREPOINT SITE THAT WILL AFFORD BRIDGES LIAISONS THE ABILITY TO SCAN AND UPLOAD ALL REQUIRED SUPPORTING DOCUMENTS TO A CENTRALIZED SITE ACCESSIBLE TO THE FISCAL DEPARTMENT. PAYMENTS WILL NOT BE MADE ON ANY NEW LEASE UNTIL ALL SUPPORTING DOCUMENTS ARE PRESENT.

Categories

Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 501826 2023-001
    Material Weakness
  • 501827 2023-002
    Material Weakness
  • 501828 2023-003
    Significant Deficiency
  • 501829 2023-004
    Significant Deficiency
  • 1078268 2023-001
    Material Weakness
  • 1078269 2023-002
    Material Weakness
  • 1078271 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.658 Foster Care Title IV-E $816,611
84.425 Education Stabilization Fund $350,373
93.670 Child Abuse and Neglect Discretionary Activities $120,600