Finding Text
Criteria: Program requirements state that the organization is required to submit quarterly reconciliations to the West Virginia Department of Health and Human Resources by the 15th of the month following the close of the quarter. Condition: For the year ended June 30, 2022, we reviewed the quarterly submitted schedules of payment program reconciliation reports provided by the Organization. The Organization could not produce documentation supporting their review of the reconciliations. Additionally, the reconciliations in total were arithmetically inaccurate and did not agree to the total expenditure for the period by a difference $4,910. Cause: Program staff maintained documentation separate from the accounting function and did not reconcile the information from their records to the accounting function’s records on a timely basis. Effect or Potential Effect: The number of expenditures for this program as reported by the Organization to the West Virginia Department of Health and Human Resources was less than the actual expenditures by $9,989. Questioned Costs: $0. Context: The organization reported an amount to the State of West Virginia that differed from the actual expenditures. The total expenditure was $364,874 with $4,910 being underreported. Recommendation: The Organization should implement policies and procedures which require programmatic invoices to be recorded consistently in the accounting records. Then, the Organization should develop review control procedures that require reconciliation of grant expenditures prepared by the program employees to the accounting records prepared by the accounting function. The review control procedures should be documented, and the documentation should be retained.