Finding 1150326 (2024-007)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2025-08-19

AI Summary

  • Core Issue: There is a significant deficiency in internal control over cash management, affecting the accuracy of financial reports.
  • Impacted Requirements: Monthly Financial Status Reports (FSRs) were not fully supported by internal records, violating grant agreement criteria.
  • Recommended Follow-Up: CMHSP should enhance internal controls to ensure all reported expenses are properly documented and supported.

Finding Text

Finding 2024-007 – CASH MANAGEMENT Type: Significant Deficiency in Internal Control. Program: ALN 93.958 Block Grants for Community Mental Health Services Grant Name: COVID 19 - BH Workforce Stabilization Fund - ARPA Grantor Number: E20240268-00 Criteria: Pursuant to IV.C. of the grant agreement, “…FSRs must be submitted on a monthly basis, no later than 30 days after the close of each calendar month. The Monthly FSRs must reflect total actual program expenditures, up to the total agreement amount.” Condition: The CMHSP did file FSRs for reimbursement. However, during testing it was noted that expenses listed in 1 of the 4 monthly FSRs tested were not supported by the CMHSP’s internal records. Cause: This condition was caused by an insufficient internal control process for cash management. Effect: Requirements for reimbursement pursuant to the grant document were not met. Questioned Cost: None. Context: Amounts received as Federal reimbursement for 1 of 4 months were not supported by the CMHSP’s internal records. However, the final report of expenses for this grant did agree with the CMHSP’s annual expenses. Recommendation: We recommend that the CMHSP review their internal controls and make necessary changes to ensure that expenses listed in reports are supported by the CMHSP’s internal records. Management’s Resp: We are in agreement with this finding.

Categories

Cash Management Significant Deficiency

Other Findings in this Audit

  • 573881 2024-004
    Material Weakness Repeat
  • 573882 2024-005
    Material Weakness Repeat
  • 573883 2024-006
    Significant Deficiency Repeat
  • 573884 2024-007
    Significant Deficiency
  • 1150323 2024-004
    Material Weakness Repeat
  • 1150324 2024-005
    Material Weakness Repeat
  • 1150325 2024-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.493 Congressional Directives $361,981
93.958 Block Grants for Community Mental Health Services $186,777
93.778 Medical Assistance Program $15,677