Finding 1084730 (2023-001)

Finding 2023-001 Federal Award: U.S. Department of Health and Human Services - Substance Abuse and Mental health Services. ALN# 93.243 Project Launch & Project Aware No. H79SM087486 & No. H79SM087752 Finding Type: Significant Deficiency Criteria: Cash management of grant funds Condition: We noted a lack of specificity regarding the expenditure reimbursement process in BFDI’s financial management policy. BFDI was also unable to identify a control in place where an independent review of the monthly financial status reports took place prior to the submission of cash reimbursement requests. Effect: Significant deficiency in internal controls. Cause: The lack of sufficient internal controls over the cost reimbursement process. Questioned Cost: None Recommendation: BFDI should establish specific written controls over the cash reimbursement process for federal awards. BFDI should also retain proper support for cash reimbursements that evidences the independent review occurred prior to submission of reimbursement requests into the payment management system. Management Response: BFDI has updated its financial management processes to require written authorization by either the CFO or CEO prior to the submission of reimbursement requests in the payment management system. This approval will be performed on the Financial Status Report and maintained for independent review.