Finding 1081755 (2024-001)

Material Weakness Repeat Finding
Requirement
ABM
Questioned Costs
-
Year
2024
Accepted
2024-11-11

AI Summary

  • Core Issue: Invoices submitted for reimbursement lacked supervisory review from July to November.
  • Impacted Requirements: Absence of a review process increases the risk of non-compliance and potential misappropriation of federal funds.
  • Recommended Follow-Up: Implement a review process for invoices before submission to ensure compliance and proper use of funds.

Finding Text

Condition: Accounting personnel accumulate invoices from the Community Mental Health Centers (CMHCs) for reimbursement under the COVID-19 Education Stabilization Program (aka the DOE Summer Camp program). After the invoices are accumulated the same accounting personnel prepares an invoice and submits the invoice and support to the State of New Hampshire, Department of Education (NH DOE) for reimbursement. While conducting our audit, we noted that no supervisory review of invoices from July through November prior to mailing them to the NHDOE. Criteria: Implementing the control to review invoices will allow for use of federal funds to be more closely monitored. Cause: There was no procedure in place to review invoices prepared and submitted to the State of New Hampshire, Department of Education for expense reimbursements prior to recommendations made by the auditor as part of their engagement as of and for the year ended June 30, 2023. Effect: The lack of controls did not result in known material non-compliance, however, it is reasonably possible that this deficiency could have resulted in non-compliance or misappropriation of assets. Specifically, the lack of supervisory review could have resulted in reimbursement of costs that are not allowed, reimbursement of expenses for activities that are unallowed, and/or misappropriation of federal funding whether due to inadvertent error or intentional misappropriation of assets. Recommendation: We recommend that the appropriate personnel continue the process of reviewing invoices prior to requesting reimbursement from the NH DOE.

Categories

Cash Management

Other Findings in this Audit

  • 505312 2024-001
    Material Weakness Repeat
  • 505313 2024-001
    Material Weakness Repeat
  • 1081754 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $893,235