Finding 1224391 (2025-002)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2025
Accepted
2026-07-22
Audit: 407730
Organization: Fraser (MN)
Auditor: EIDE BAILLY LLP

AI Summary

  • Core Issue: Inaccurate reimbursement requests were submitted due to ineffective internal controls over compliance.
  • Impacted Requirements: Compliance with CFR 200.303(a) was not met, risking noncompliance with federal program standards.
  • Recommended Follow-Up: Implement a thorough and documented review process for reimbursement requests before submission.

Finding Text

U.S. Department of Health and Human Services Federal Financial Assistance Listing #93.696 Certified Community Behavioral Health Clinic Expansion Grant Cash Management Significant Deficiency in Internal Control over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: During our testing, we identified an instance where the reimbursement request had inaccurate information and incomplete documentation of review and approval prior to submission of the request. Cause: Fraser’s internal controls did not operate as designed, which resulted in an inaccurate reimbursement request being submitted. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: $761.08 Context/Sampling: A nonstatistical sample of three out of eleven were selected for testing. Repeat Finding from Prior Year: No Recommendation: We recommend that management develop a more extensive and documented review over reimbursement requests prior to submission. Views of Responsible Officials: Management agrees with this finding.

Corrective Action Plan

Cash Management Significant Deficiency in Internal Control over Compliance Finding Summary: During testing there was an instance identified were an unallowed payroll item in the amount of $761.08 was submitted for reimbursement. In addition, there was no documented review of the reimbursement request prior to submission. Responsible Individuals: Jim Strickland, Jim Olson Corrective Action Plan: We have designated a member of management to review more extensively reimbursement requests at a more detailed level prior to submission. Anticipated Completion Date: Already in place

Categories

Cash Management Significant Deficiency

Other Findings in this Audit

  • 1224390 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.696 CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC EXPANSION GRANTS $1.14M
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $78,152
93.434 EVERY STUDENT SUCCEEDS ACT/PRESCHOOL DEVELOPMENT GRANTS $31,060