Finding Text
Federal program
93.958 – Block Grants for Community Mental Health Services and 93.696 – Certified Community Behavioral Health Clinic Expansion Grants
Compliance requirements
Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria or specific requirement
Internal controls should be in place to ensure that costs are correctly charged as to account, amount, and period, and to ensure that costs are adequately documented and supported.
Condition
During the year under audit, multiple instances were identified were amounts booked via journal entries were either recorded incorrectly or were not made at all, as well as two months where a grant was overcharged for eligible expenses.
Context
During testing, one expenditure charged to the CCBHC Expansion Grant was identified as an unallowable expenditure. However, prior to this testing, the client had identified overcharges to the CMHC Grant, CCBHC Expansion Grant and IPS MHBG ARPA Grant as a result of internal reconciliation processes for audit preparedness.
The IPS MHBG ARPA Grant had $50.00 in over-charges during the year ended December 31, 2023. The CMHC Grant had $45.22 in over-charges during the year ended December 31, 2023. An amount of $3,197.40 in likely questioned costs were identified for 93.958 – Block Grants for Community Mental Health Services.
The CCBHC Expansion Grant had $390.38 in over-charges during the year ended December 31, 2023. An amount of $2,184.68 in likely questioned costs were identified for 93.696 – Certified Community Behavioral Health Clinic Expansion Grants.
Effect
Expenditures were incorrectly charged to the programs for the period under audit.
Cause
Human error occurred during the process of manually creating journal entries to book expenditures to the program, as well as human error in identifying instances where journal entries were needed to accurately reflect eligible program expenses but those journal entries were not made.
Recommendation
We recommend that supporting documentation when preparing journal entries associated with federal programs are reviewed carefully and that grant reconciliations of eligible expenses to those recorded in the accounting software occur monthly.
Views of responsible officials and planned corrective actions
See corrective action plan.