Finding 1205342 (2025-004)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2026-03-31
Audit: 397046
Organization: The Edinburg Center, Inc. (MA)

AI Summary

  • Core Issue: There was a significant deficiency in internal controls, specifically regarding the approval of invoices.
  • Impacted Requirements: Organizations must have effective controls to prevent unauthorized disbursements and ensure compliance with federal regulations.
  • Recommended Follow-Up: Review and strengthen approval processes for expenses to ensure compliance and maintain proper documentation.

Finding Text

Federal agency: U.S. Department of Health and Human Services Federal program title: Block Grants for Community Mental Health Services Assistance Listing Number: 93.958 Pass-Through Agency: Commonwealth of Massachusetts Pass-Through Number(s): Various Award Period: 7/1/2024 – 6/30/2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Organizations must establish and maintain effective internal controls that safeguard cash and other assets, prevent improper or unauthorized disbursements, ensure compliance with federal statutes, regulations, and award terms. Condition: During our testing, we noted one instance out of a sample of forty where invoices were not supported with documented approval in accordance with internal control policies. Questioned Costs: None Context: The Organization did not obtain proper approval for one invoices. Cause: The controls in place were not operating effectively to ensure expenses were properly approved. Effect: Expenses were not properly approved in accordance with internal controls. Repeat Finding: No Recommendation: It is recommended that the Organization review controls in place to ensure expenses are approved and maintain evidence of approval. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

U.S. Department of Health and Human Services Block Grants for Community Mental Health Services– Assistance Listing No. 93.958 Recommendation: It is recommended that the Organization review controls in place to ensure expenses are approved and maintain evidence of approval. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: New Management has adopted a new A/P process for invoice approvals. Approved invoices are required for expenses to be paid. All autopay features on utility bills has been removed. Name(s) of the contact person(s) responsible for corrective action: Kate Mombourquette Planned completion date for corrective action plan: Completed 12/31/2025

Categories

Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1205337 2025-003
    Material Weakness Repeat
  • 1205338 2025-003
    Material Weakness Repeat
  • 1205339 2025-003
    Material Weakness Repeat
  • 1205340 2025-004
    Material Weakness Repeat
  • 1205341 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $1.19M
84.126 REHABILITATION SERVICES VOCATIONAL REHABILITATION GRANTS TO STATES $76,782
93.235 TITLE V STATE SEXUAL RISK AVOIDANCE EDUCATION (TITLE V STATE SRAE) PROGRAM $67,057
84.027 SPECIAL EDUCATION GRANTS TO STATES $23,748
84.421 DISABILITY INNOVATION FUND (DIF) $15,553
93.791 MONEY FOLLOWS THE PERSON REBALANCING DEMONSTRATION $13,124