Finding 1100550 (2024-005)

Significant Deficiency over Internal Control 2024-005 Cash Management Program: Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) Federal Assistance Listing No: 93.224 County Recipient: Community Action Partnership of Natrona County Federal Agency: Department of Health and Human Services Grant year: 2022 Federal Award Identification: Unknown Applicable Pass-through Entity: None Criteria When non-federal entities are funded under the reimbursement method, expenditures included in reimbursement requests should have supporting documentation and the entity should have paid for the costs for which the reimbursement is requested prior to the date of the reimbursement request. Condition Community Action Partnership of Natrona County (CAP) submitted reimbursement requests in excess of actual expenditures. Cause Due to turnover in grant management, processes that had previously existed were overlooked. A reconciliation of grant expenditures to the amounts requested for reimbursement was not performed resulting in reimbursements that were greater than the actual grant expenditures Effect or potential effect Without adequate review and reconciliations of reimbursement requests, an entity may submit inaccurate expenditure reimbursement requests. Questioned Cost None Context We tested 20 out of 31 reimbursement requests submitted during the grant period by comparing each reimbursement request to the actual expenditures in the CAP general ledger. Additionally, we reconciled total grant reimbursements to total grant expenditures. We noted that total grant reimbursement requests exceeded the total grant expenditures by $3,222. Identification as a Repeat Finding Repeat finding of 2023-003 Recommendation We recommend CAP review its policies and procedures related to the internal controls over reimbursement requests to assure reimbursement requests have supporting documentation and reconcile to actual expenditures incurred. Views of Responsible Officials Over the past year, CAPNC has continued to make significant improvements to its fiscal practices, particularly in navigating the software conversion from an archaic, unsupported system to Sage Intacct. This new software has modernized and deployed the levels of internal controls that were previously missing due to inadequate fiscal personnel oversight and technical capability. Current staff have been trained under Sage Intacct and Wipfli consultants to properly track accounts payable (A/P), accounts receivable (A/R), payroll, and grant management, ensuring data integrity and compliance. Resulting journal entries are in place to bring system in alignment and current as of July 2024, alleviating any further discrepancies related to past staff and old software. The old system will be archived as required under retention. See Corrective Action Plan