Finding 1223158 (2025-005)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2025
Accepted
2026-07-08
Audit: 406681
Organization: Hillcrest Family Services, INC (IA)
Auditor: EIDE BAILLY LLP

AI Summary

  • Core Issue: Lack of documentation for review and approval of reimbursement requests indicates a significant deficiency in internal controls.
  • Impacted Requirements: Compliance with OMB guidelines for maintaining adequate internal controls over federal financial assistance.
  • Recommended Follow-Up: Enhance internal control policies to ensure proper documentation of review and approval processes for reimbursement requests.

Finding Text

U.S. Department of Health and Human Services Federal Financial Assistance Listing Number 93.696, 1H79SM088927-01, September 29, 2024 and September 29, 2025 Certified Community Behavioral Health Clinic Expansion Grants Cash Management Significant Deficiency in Internal Control over Compliance Criteria The OMB Compliance Supplement requires that non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Condition During our testing of reimbursement requests, there was no documentation available for the review and approval procedures performed. Cause The Organization did not have an adequate internal control policy to require the documentation of the reimbursement requests’ review and approval. Effect Inaccurate reimbursement requests may be prepared, which could lead to amounts received in error. Questioned Costs None. Context/Sampling There was a total of two reimbursement requests prepared for the year ended June 30, 2025 all of which were selected for testing. None of the reimbursement requests contained documentation of the request being reviewed or approved. Repeat Finding from Prior Year(s) Yes, prior year finding 2024-005 Recommendation We recommend the Organization enhance internal control policies to require documentation of the review and approval procedures performed in the preparation and review of reimbursement requests. Views of Responsible Individuals Management agrees with the finding.

Corrective Action Plan

Finding 2025-005 Cash Management Federal Agency Name: U.S. Department of Health and Human Services Program Name: Certified Community Behavioral Health Clinic Expansion Grants Federal Financial Assistance Listing Number: 93.696 Finding Summary: During audit testing of reimbursement requests, there was no documentation available for the review and approval procedures performed. Responsible Individuals: Janet Warren, Director of Financial Operations Corrective Action Plan: Management agrees with the finding. There was turnover in staff and the prior CFO did not keep a record of his review over cash management. In the future, management will ensure that documentation of the approval process for reimbursement is kept. Anticipated Completion Date: June 5, 2026.

Categories

Cash Management Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1223159 2025-006
    Material Weakness Repeat
  • 1223160 2025-007
    Material Weakness Repeat
  • 1223161 2025-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.696 CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC EXPANSION GRANTS $1.39M
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $233,990
93.917 HIV CARE FORMULA GRANTS $79,397
93.150 PROJECTS FOR ASSISTANCE IN TRANSITION FROM HOMELESSNESS (PATH) $63,718
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $40,631