Finding 1102941 (2024-001)

Significant Deficiency
Requirement
AB
Questioned Costs
$1
Year
2024
Accepted
2025-03-10
Audit: 345415
Organization: Resource Center Dallas (TX)

AI Summary

  • Core Issue: There was a significant deficiency in internal controls, leading to discrepancies in service units billed for the HIV Emergency Relief Project Grant.
  • Impacted Requirements: The Center's procedures failed to ensure that invoiced units matched the actual services provided, resulting in an overbilling of $36,715.14.
  • Recommended Follow-Up: Management should enhance controls to verify that client tracking data aligns with services performed before submitting reimbursement requests.

Finding Text

Allowable costs and activities‐significant deficiency in internal controls over compliance and compliance finding. HIV Emergency Relief Project Grant ALN 93.914 Criteria: Resource Center Dallas’ (Center) internal control procedures over compliance specify that the program manager and the revenue staff accountant review any invoice prior to requesting reimbursement. Condition: During allowable activities for the HIV Emergency Relief Project Grant, for 1 out of 41 activities tested, the number of units of service provided did not match the units of service recorded in the client tracking system. Cause: Internal control was not effective at detecting data entry errors. Effect: The Center over billed the number of units of service. The total units billed for the month of September totaled 399 instead of 168 units resulting in the grant being overcharged by the Center. Questioned Costs: Known questioned costs totaling $36,715.14. Recommendation: Management should implement controls to ensure the units of service entered into the client tracking system match the units of service performed before the request for reimbursement is submitted. Management’s Response: See corrective action plan.

Categories

Questioned Costs Allowable Costs / Cost Principles Cash Management Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 526499 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.914 Hiv Emergency Relief Project Grants $2.93M
93.940 Hiv Prevention Activities Health Department Based $963,630
93.917 Hiv Care Formula Grants $147,105
10.569 Emergency Food Assistance Program (food Commodities) $111,047
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $75,847
10.187 The Emergency Food Assistance Program (tefap) Commodity Credit Corporation Eligible Recipient Funds $46,901
10.182 Pandemic Relief Activities: Local Food Purchase Agreements with States, Tribes, and Local Governments $10,318