Finding 1172539 (2025-002)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2026-02-05
Audit: 385809
Organization: Zepf Center (OH)

AI Summary

  • Core Issue: The organization exceeded the $350 incentive limit for 2 out of 25 program participants.
  • Impacted Requirements: Internal controls over compliance with grant agreement terms were insufficient.
  • Recommended Follow-Up: Establish a review process for payment limits before distributing funds to participants.

Finding Text

Federal Agency: Department of Health and Human Services Federal Program Name: Healthy Marriage and Responsible Fatherhood – Fatherhood Connection (FIRE) Assistance Listing Number: 93.086 Federal Award Identification Number and Year: 90ZJ0017-04 & 90ZJ0017-05 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: July 1, 2024 to June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or specific requirement: Grant agreement states that a maximum of $350 for incentives to be paid out to each program participant. Condition: The Organization did not meet requirements for all program participants incentives. Context: Of the 25 participants tested, a total of 2 participants were paid more than $350 in program incentives. Cause: Lack of internal controls over incentive maximums. Effect: Unallowable payments to certain participants charged to a grant or not recorded against a grant. Repeat Finding: No Recommendation: Implement controls for review of payment limits prior to distributing funds to program participants. Views of responsible officials: There is no disagreement with the audit finding. Corrective action plans: Management is implementing a tool to monitor and track the incentive payments.

Corrective Action Plan

Fatherhood Connection (FIRE) – Assistance Listing No. 93.086 Recommendation: The Center should implement controls for review of payment limits prior to distributing funds to program participants. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management is implementing a tool to monitor and track the incentive payments. Name(s) of the contact person(s) responsible for corrective action: David Oppenlander, CFO Planned completion date for corrective action plan: January 31, 2026

Categories

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

Other Findings in this Audit

  • 1172536 2025-001
    Material Weakness Repeat
  • 1172537 2025-001
    Material Weakness Repeat
  • 1172538 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.086 HEALTHY MARRIAGE PROMOTION AND RESPONSIBLE FATHERHOOD GRANTS $1.31M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $713,206
93.696 CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC EXPANSION GRANTS $698,539
93.788 OPIOID STR $671,523
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $379,341
93.829 SECTION 223 DEMONSTRATION PROGRAMS TO IMPROVE COMMUNITY MENTAL HEALTH SERVICES $268,960
93.667 SOCIAL SERVICES BLOCK GRANT $224,866
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $134,705
93.557 EDUCATION AND PREVENTION GRANTS TO REDUCE SEXUAL ABUSE OF RUNAWAY, HOMELESS AND STREET YOUTH $127,033
93.623 BASIC CENTER GRANT $115,950
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $90,000
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $68,733
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $27,679