Finding 1223159 (2025-006)

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

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance due to lack of documentation for report review and approval.
  • Impacted Requirements: The organization failed to meet OMB Compliance Supplement requirements for maintaining adequate internal controls.
  • Recommended Follow-Up: Enhance internal control policies to ensure documentation of review and approval procedures for all reports.

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 Reporting 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 reporting, there was no documentation available for the review and approval procedures performed for one of the reports tested. Cause The Organization did not have an adequate internal control policy to require the documentation of the reports’ review and approval. Effect Inaccurate reports may be prepared, which could lead to amounts reported in error. Questioned Costs None. Context/Sampling There was a total of two reports prepared for the year ended June 30, 2025 all of which were selected for testing. One of the reports did not contain documentation of the report being reviewed or approved. Repeat Finding from Prior Year(s) No 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 reports. Views of Responsible Individuals Management agrees with the finding.

Corrective Action Plan

Finding 2025-006 Reporting 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 reporting, there was no documentation available for the review and approval procedures performed for one of the reports tested. 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 reporting. In the future, management will ensure that documentation of the approval process for reporting is kept. Anticipated Completion Date: June 5, 2026.

Categories

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1223158 2025-005
    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