Finding 1215881 (2024-012)

Material Weakness Repeat Finding
Requirement
H
Questioned Costs
-
Year
2024
Accepted
2026-05-28

AI Summary

  • Core Issue: The Organization lacks adequate controls over reporting requirements for the SMT Program, leading to significant deficiencies.
  • Impacted Requirements: Individual records of program participants must be maintained for audit, but there are delays in documentation and inaccuracies in participant status.
  • Recommended Follow-Up: Implement a robust internal control system to ensure timely entry and review of encounter notes, and accurately track participant activity.

Finding Text

2024-012 Controls Over Reporting for SMT Program U.S. Department of Health and Human Services 93.958 – Block Grants for Community Mental Health Services Reporting – Significant Deficiency – Internal Control Finding Conditions: The Organization does not have adequate controls in place over reporting requirements. Criteria: Per the Westchester County contract, the Organization is required to keep individual records of program participants available for audit by the County. Context: 3 out of 4 participants selected had instances of encounter notes entered months after the original encounter. 1 of 4 participants was not active in the program and had not been removed from the participant listing. For monthly reporting, reports were submitted but no documentation of review or timely reporting was maintained. Cause: The Organization did not follow control procedures routinely and has not adopted sufficient relevant controls over the records for the program. Effect: Encounter notes may be inaccurate or not complete if audited by the State or HHS. Recommendation: RBT recommends that the Organization establish a system of internal control over records for the program to ensure notes are entered and reviewed timely and that inactive participants are indicated as such. Monthly reports should be documented as reviewed and noted when submitted. Management Response: See Corrective Action Plan.

Corrective Action Plan

Controls Over Reporting for SMT Program Management acknowledges that encounter notes were not entered on a timely basis and that an inactive participant remained on the program listing during the audit period. The Organization will implement a supervisory review process requiring that encounter notes are entered within a defined timeframe following each program interaction and reviewed by a supervisor for completeness and accuracy. The participant listing will be reconciled monthly to ensure that inactive individuals are promptly flagged and removed. Monthly reports will be documented as reviewed and dated at the time of submission to maintain an auditable record of timely reporting. This process has already taken place in late 2025 and the CFO and Controller will oversee the process.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1215873 2024-010
    Material Weakness Repeat
  • 1215874 2024-011
    Material Weakness Repeat
  • 1215875 2024-012
    Material Weakness Repeat
  • 1215876 2024-011
    Material Weakness Repeat
  • 1215877 2024-012
    Material Weakness Repeat
  • 1215878 2024-011
    Material Weakness Repeat
  • 1215879 2024-012
    Material Weakness Repeat
  • 1215880 2024-011
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $463,206
14.267 CONTINUUM OF CARE PROGRAM $416,381
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $117,771