FAC Explorer

Finding 12508 (2022-003)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-09-21
Audit: 17054
Organization: Battle Ground Healthcare (WA)
Auditor: McDonald Jacobs PC

AI Summary

  • Core Issue: There is a significant deficiency in the handling of contract billings due to a lack of segregation of duties.
  • Impacted Requirements: Responsibilities for preparing, reviewing, and submitting contract billings must be separated to prevent errors.
  • Recommended Follow-Up: Implement procedures to ensure duties are segregated and reviews are conducted in a timely manner.

Finding Text

Finding # 2022-003 (Repeat of 2021-004) Type: Significant deficiency over allowable costs CFDA Number: 14.218/14.228 Community Development Block Grants/ Entitlement Grants Requirement: Responsibilities for preparing, reviewing, and submitting contract billings should be segregated. Condition/Context: Contract billings were prepared, reviewed, and submitted by the same person. Cause: Duties were not segregated for the contract billing cycle. Effect: Improper or inaccurate amounts could be charged to contracts. Questioned Costs: None. Recommendation: We recommend proper segregation of duties between the preparer and the reviewer. Procedures should be put in place to ensure reviews are completed timely. Management?s Response: Management will develop procedures to document individuals responsible for preparing and reviewing contract billings.

Corrective Action Plan

Finding # 2022-003 (Repeat of 2021-004) Significant deficiency over allowable costs 14.218/14.228 Community Development Block Grants/ Entitlement Grants Finding: Contract billings were prepared, reviewed, and submitted by the same person and duties were not segregated for the contract billing cycle Recommendation: The Organization should have proper segregation of duties between the preparer and the reviewer. Procedures should be put in place to ensure reviews are completed timely. Corrective Action: We plan to develop procedures to document the individuals preparing and the individuals reviewing invoices. We will review current procedures to ensure separate personnel are responsible for each function. Anticipated Completion Date: December 31, 2023

Categories

Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 12507 2022-002
    Material Weakness Repeat
  • 12509 2022-002
    Material Weakness Repeat
  • 588949 2022-002
    Material Weakness Repeat
  • 588950 2022-003
    Significant Deficiency Repeat
  • 588951 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.218 Community Development Block Grants/entitlement Grants $1.09M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $404,850
21.027 Coronavirus State and Local Fiscal Recovery Funds $21,223