Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: Substance Abuse Prevention and Treatment Block Grant (SABG); SOR Recovery Support Services
Assistance Listing Number: 93.959 and 93.788
Federal Award Identification Number and Year: K6103.01 – 2023, K4849-02 – 2022; K6479 - 2023
Pass-Through Agency: Washington State Health Care Authority
Pass-Through Number(s): K6103.01
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance – Allowable Costs and Activities; Other Matters
Criteria or specific requirement: Proper internal controls over cash management include the review and approval of grant draws prior to submission to the granting agency, to ensure accuracy of expenditures and client services claimed on the invoices.
Condition: Of the six client service reimbursements tested for SABG, three were incorrectly charged to the grant. Of these three, two of the errors were identified by the client in during February 2024 and steps taken with the granting agency to correct these.
Of the five client service reimbursements tested for SOR, five were incorrectly charged to the grant. Of these five, three of the errors were identified by the client in September 2023 and steps taken with the granting agency to correct these.
Client service reimbursements were calculated using incorrect program service information (i.e., SABG client services were used to determine SOR client service reimbursement amounts),and hours were not supported by the client service data.
Questioned costs: None.
Context: Three of the six monthly billings for the SABG program had incorrectly calculated client service reimbursement amounts for the Client Service reimbursement, which resulted in an incorrect amount being charged to the grant.
Five of the five monthly billings for the SOR program had incorrectly calculated client service reimbursement amounts for the Client Service reimbursement, which resulted in an incorrect amount being charged to the grant.
Cause: The service hour support calculations were incorrectly determined, and these incorrect calculations were used to complete the monthly grant billing.
Effect: Client service hours were incorrectly charged to the grant.
Repeat finding: Not a repeat finding.
Recommendation: We recommend grant billers ensure service reports for the proper program and time period are used to calculate the client service billing amount. We also recommend the data used to determine this amount be reviewed and approved during the grant billing review process
Views of responsible officials: There is no disagreement with the audit finding