Finding Text
Finding: 2024-004: Record Retention Federal Programs - Block grants for Community Mental Health Services. Federal Financial Assistance Listings - 93.958. Federal Award Numbers - 4529066471 and 4529064876. Federal Agencies - Department of Health and Human Services Pass-through Entity - ODMHSAS. Allowable Activities or Unallowed, Allowable Costs/Cost Principles, Eligibility, and Period of Performance. Significant Deficiency in Internal Control over Compliance. Criteria: Uniform Guidance (2 CFR 200.334) establishes recipients and subrecipients must retain all federal award records for three years from the date of submission of their final financial report. For awards that are renewed quarterly or annually, the recipient and subrecipient must retain records for three years from the date of submission of their quarterly or annual financial report, respectively. Records to be retained include but are not limited to financial records, supporting documentation, and statistical records. Condition: Hope was unable to provide support for reimbursed expenditures totaling 31,673, as reported in the SEFA. Cause: Management's internal control for retaining documentation was not adequately designed to ensure the population of costs and underlying support could be timely identified and supported under the Uniform Guidance requirements. Effect or Potential Effect: Without adequate retention of support for expenditures reported and reimbursed, the auditor was unable to determine if they were in compliance with requirements under the federal award. Questioned Costs: 31,673. Context: The management team and personnel responsible for overseeing document approval and retention changed from the period the costs were initially incurred and approved to the period they were under audit and the current management team was not able to locate the supporting documentation. Repeat Finding from Prior Year: No. Recommendation: Management may consider implementing specific retention policies and controls to ensure digital copies as well as sub-listing of all applicable costs being reimbursed are maintained in accordance with the 2 CFR 200.334. Views of Responsible Officials: Management's response is included in the corrective action plan.