Finding 1099034 (2023-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-02-10
Audit: 341818
Organization: Center for Mental Health (MT)

AI Summary

  • Core Issue: Programmatic reports were submitted without documented review or authorization, increasing the risk of errors.
  • Impacted Requirements: Federal awards require entities to maintain internal controls ensuring compliance with reporting standards.
  • Recommended Follow-Up: Establish and document clear policies for report preparation and review to ensure compliance and accountability.

Finding Text

Reporting U.S. Department of Public Health ALN: 93.829, Central Montana Certified Community Behavioral Health Clinic Expansion Project Criteria: Entities receiving federal awards shall establish and maintain internal control over the federal awards that provide reasonable assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and terms and conditions of the federal award. Condition: The Center completed programmatic reports as required in the grant award. However, there was no evidence that these reports were reviewed or authorized prior to submission. Context: There were two programmatic reports submitted during the audit period, and we tested one of the reports. Effect: There is an increased risk of errors or omissions in the programmatic reports. Questioned Costs: No questioned costs. Cause: Center staff stated the information was prepared by an employee and reviewed by another. However, no documentation was retained indicating the programmatic report was reviewed prior to submission. Auditor Recommendation: We recommend that the Center establish policies and procedures for reporting and retain documentation for these controls. Organization Response: The preparation of programmatic reports for federal funds will be the responsibility of the Staff Accountant. Any completed programmatic reports will then be reviewed by the Accounting Manager (or Controller in the absence of the Accounting Manager) and the grant Program Director (PD) and authorized by the Controller (or CFO in the absence of the Controller) prior to submission. Electronic and/or printed copies of written communications related to the review and approval of programmatic reports will be secured in a grant folder in the CFMH Microsoft Outlook email system and/or the Microsoft Teams application, or in a physical grants folder maintained by the Staff Accountant. The Controller (or CFO in the absence of the Controller) will have the responsibility to retain records pertaining to the communication demonstrating the review and approval of prepared programmatic reposts for federal grant funding. The Staff Accountant and the Accounting Manager will also retain any supporting documents related to communication of the review and approval process for programmatic reports for federal grant funding.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 522590 2023-001
    Material Weakness
  • 522591 2023-002
    Significant Deficiency
  • 522592 2023-003
    Significant Deficiency
  • 1099032 2023-001
    Material Weakness
  • 1099033 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.829 Central Montana Certified Community Behavioral Health Clinic Expansion Project $1.92M
93.498 Covid-19 Provider Relief Fund $98,259