Finding 1206757 (2025-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-04-15
Audit: 398814
Organization: Vivent Health and Affiliates (WI)

AI Summary

  • Core Issue: The Organization failed to detect reimbursement for the same expense across two grant periods due to ineffective controls.
  • Impacted Requirements: Internal controls over compliance for allowable costs were not properly designed or maintained.
  • Recommended Follow-Up: Management should enhance controls related to voided and reissued checks to ensure expenses are charged correctly to the appropriate grant period.

Finding Text

Agency: All Assistance Listing Number and State ID: All Programs: All Statement of Condition: The Organization's controls did not detect that reimbursement was received for the same expenditure in the prior and the current grant period. Criteria: Organizations are responsible for designing, implementing and maintaining internal control over compliance for allowable costs. Questioned Costs: See finding 2025-02. Context: The Organization had an instance of noncompliance with allowable costs and the controls in place did not detect the error. Effect: Noncompliance with allowable costs went undetected due to a lack of effective controls over voided and reissued checks. Cause: The Organization voided and reissued a check. Due to this an expense was reimbursed by a government agency in two fiscal years. Although the amount was not material current controls did not detect the error which led to noncompliance. Recommendation: We recommend management review their controls surrounding allowable costs, specifically in instances when expenses are voided and rebooked. This will ensure expenditures are charged to grants in the effective grant period. Management's Response: Management reviewed this instance and performed a detailed analysis of our internal controls, procedures and other like transactions. Management concluded that it was an isolated incident that occurred due to the timing and processing of the voided transaction and the transition to a new grant year. Vivent Health has implemented additional controls including dual review of grant year-to-date expenditures and system and reporting enhancements that will identify and prevent changes related to prior periods

Corrective Action Plan

Corrective Action Planned: Management reviewed this instance and performed a detailed analysis of our internal controls, procedures and other like transactions. Management concluded that it was an isolated incident that occurred due to the timing and processing of the voided transaction and the transition to a new grant year. Vivent Health has implemented additional controls including dual review of grant year-to-date expenditures and system and reporting enhancements that will identify and prevent changes related to prior periods. Specific steps taken are: 1) retrained accounts payable team on void check procedure, 2) implemented a system enhancement that does not permit a user to enter any transaction type to a prior month that has been closed (also planned for new financial system to be implemented by September 2026), 3) examined all void check transactions for any grant-related expenditures that crossed the last two fiscal years with no instance of duplicate invoicing identified, and 4) implemented dual review of running a YTD general ledger report for all grants and comparing total expenditures for the grant period versus total expenditures claimed in the prior month. Name(s) of Contact Person(s) Responsible for Corrective Action: Erin Crandall, VP Finance Anticipated Completion Date: These actions were implemented February 2026 and will be documented throughout the current fiscal year, with completion at fiscal year-end (August 31, 2026). Vivent Health is implementing a new ERP system in September 2026 and will ensure these controls are in place.

Categories

Allowable Costs / Cost Principles Cash Management Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1206688 2025-001
    Material Weakness Repeat
  • 1206689 2025-001
    Material Weakness Repeat
  • 1206690 2025-001
    Material Weakness Repeat
  • 1206691 2025-001
    Material Weakness Repeat
  • 1206692 2025-001
    Material Weakness Repeat
  • 1206693 2025-001
    Material Weakness Repeat
  • 1206694 2025-001
    Material Weakness Repeat
  • 1206695 2025-001
    Material Weakness Repeat
  • 1206696 2025-001
    Material Weakness Repeat
  • 1206697 2025-001
    Material Weakness Repeat
  • 1206698 2025-001
    Material Weakness Repeat
  • 1206699 2025-001
    Material Weakness Repeat
  • 1206700 2025-001
    Material Weakness Repeat
  • 1206701 2025-001
    Material Weakness Repeat
  • 1206702 2025-001
    Material Weakness Repeat
  • 1206703 2025-001
    Material Weakness Repeat
  • 1206704 2025-001
    Material Weakness Repeat
  • 1206705 2025-001
    Material Weakness Repeat
  • 1206706 2025-001
    Material Weakness Repeat
  • 1206707 2025-001
    Material Weakness Repeat
  • 1206708 2025-001
    Material Weakness Repeat
  • 1206709 2025-001
    Material Weakness Repeat
  • 1206710 2025-001
    Material Weakness Repeat
  • 1206711 2025-001
    Material Weakness Repeat
  • 1206712 2025-001
    Material Weakness Repeat
  • 1206713 2025-001
    Material Weakness Repeat
  • 1206714 2025-001
    Material Weakness Repeat
  • 1206715 2025-001
    Material Weakness Repeat
  • 1206716 2025-001
    Material Weakness Repeat
  • 1206717 2025-001
    Material Weakness Repeat
  • 1206718 2025-001
    Material Weakness Repeat
  • 1206719 2025-001
    Material Weakness Repeat
  • 1206720 2025-001
    Material Weakness Repeat
  • 1206721 2025-001
    Material Weakness Repeat
  • 1206722 2025-001
    Material Weakness Repeat
  • 1206723 2025-001
    Material Weakness Repeat
  • 1206724 2025-001
    Material Weakness Repeat
  • 1206725 2025-001
    Material Weakness Repeat
  • 1206726 2025-001
    Material Weakness Repeat
  • 1206727 2025-001
    Material Weakness Repeat
  • 1206728 2025-001
    Material Weakness Repeat
  • 1206729 2025-001
    Material Weakness Repeat
  • 1206730 2025-001
    Material Weakness Repeat
  • 1206731 2025-001
    Material Weakness Repeat
  • 1206732 2025-001
    Material Weakness Repeat
  • 1206733 2025-001
    Material Weakness Repeat
  • 1206734 2025-001
    Material Weakness Repeat
  • 1206735 2025-001
    Material Weakness Repeat
  • 1206736 2025-001
    Material Weakness Repeat
  • 1206737 2025-001
    Material Weakness Repeat
  • 1206738 2025-001
    Material Weakness Repeat
  • 1206739 2025-001
    Material Weakness Repeat
  • 1206740 2025-001
    Material Weakness Repeat
  • 1206741 2025-001
    Material Weakness Repeat
  • 1206742 2025-001
    Material Weakness Repeat
  • 1206743 2025-001
    Material Weakness Repeat
  • 1206744 2025-001
    Material Weakness Repeat
  • 1206745 2025-001
    Material Weakness Repeat
  • 1206746 2025-001
    Material Weakness Repeat
  • 1206747 2025-001
    Material Weakness Repeat
  • 1206748 2025-001
    Material Weakness Repeat
  • 1206749 2025-001
    Material Weakness Repeat
  • 1206750 2025-001
    Material Weakness Repeat
  • 1206751 2025-001
    Material Weakness Repeat
  • 1206752 2025-001
    Material Weakness Repeat
  • 1206753 2025-001
    Material Weakness Repeat
  • 1206754 2025-001
    Material Weakness Repeat
  • 1206755 2025-001
    Material Weakness Repeat
  • 1206756 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.939 HIV PREVENTION ACTIVITIES NON-GOVERNMENTAL ORGANIZATION BASED $441,027
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $435,103
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $418,260
93.917 HIV CARE FORMULA GRANTS $359,449
93.686 ENDING THE HIV EPIDEMIC: A PLAN FOR AMERICA — RYAN WHITE HIV/AIDS PROGRAM PARTS A AND B $352,199
93.940 HIV PREVENTION ACTIVITIES HEALTH DEPARTMENT BASED $280,904
93.918 GRANTS TO PROVIDE OUTPATIENT EARLY INTERVENTION SERVICES WITH RESPECT TO HIV DISEASE $220,935
93.136 INJURY PREVENTION AND CONTROL RESEARCH AND STATE AND COMMUNITY BASED PROGRAMS $216,146
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $194,382
93.279 DRUG USE AND ADDICTION RESEARCH PROGRAMS $187,355
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $85,618
93.928 SPECIAL PROJECTS OF NATIONAL SIGNIFICANCE $83,535
93.924 RYAN WHITE HIV/AIDS DENTAL REIMBURSEMENT AND COMMUNITY BASED DENTAL PARTNERSHIP GRANTS $41,895
93.778 MEDICAL ASSISTANCE PROGRAM $29,851
93.977 SEXUALLY TRANSMITTED DISEASES (STD) PREVENTION AND CONTROL GRANTS $25,000
93.914 HIV EMERGENCY RELIEF PROJECT GRANTS $11,196