Finding 1135691 (2024-001)

Criteria: An entity receiving funds under the Substance Abuse and Mental Health Services Administration (Assistance Listing #93.243) must report accurate expenditures incurred under the program. Although no supporting documentation is required to be submitted with the periodic expense reporting, it must be maintained to support the expenses claimed. Condition: When testing a sample of expense reports submitted by Carolinas CARE Partnership (the Organization), the Organization’s management could not provide supporting documentation for all expenses reported. Also, some expenses reported were not valid expenses for the time period being reported on. Effect: The Organization was reimbursed for $36,218 of expenses that were not supported by underlying records. Cause: There appear to be two main causes for the lack of complete underlying supporting records and the inaccuracies in reporting expenses. First, the Finance Director, who completed most of the periodic expense reports, left the Organization shortly after year-end. She did not leave all of the underlying supporting documentation in an organized fashion so that it could easily be located. Second, for some reporting periods, other personnel completed these forms, and they did not complete them accurately. Recommendation: The Organization’s management should develop guidelines to ensure that all underlying supporting documentation for expenses reported are maintained in a clear, organized manner. Also, employees completing these reporting forms should be properly trained on what expenses can be reported and how to ensure that accurate amounts that are supported by underlying documents are reported. View of responsible officials and planned corrective actions: Management of the Organization agrees with this finding. Management intends to develop guidelines to ensure that supporting documentation for expenses reported are maintained in a clear, organized manner. Also, employees completing these reporting forms should be properly trained on what expenses can be reported and how to ensure that accurate amounts are reported. Responsible Official: Tawanna Denmark, Executive Director