Finding 15943 (2022-002)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-07-25

AI Summary

  • Core Issue: Late submission of grant vouchers for 2022, impacting revenue recognition.
  • Impacted Requirements: Timely preparation and submission of vouchers for Community Development Block Grant and Substance Abuse programs.
  • Recommended Follow-Up: Implement a process to ensure vouchers are prepared and submitted on time, with oversight from leadership.

Finding Text

2022-002 Grant Voucher Submissions Criteria: The majority of the Facility?s revenue are contracts and grants from government agencies. Revenue is recognized when the Facility incurs expenses related to the contract. Generally, the funds are not remitted until a voucher for the services provided or expenses incurred has been submitted for reimbursement. Condition: During the year under audit, the majority of voucher submissions for 2022 were not prepared on a timely basis and were submitted in 2023. Grant voucher submissions were not completed in a timely manner for the two programs, Community Development Block Grant (Assistance Listing Number 14.218) and the Prevention and Treatment of Substance Abuse (Assistance Listing Number 93.959). This finding is a significant deficiency for the 2022 audit. All of the vouchers were prepared and submitted by the conclusion of the audit. Cause: There have been staffing changes within the Facility's finance department during 2022 which resulted in delays with preparing vouchers and therefore, submitting vouchers for reimbursement. Effect: Late voucher preparation and submission may result in the denial of vouchers by granting agencies and the loss of revenue for services that were delivered by the Facility. Late submission directly impacts cash flows as in most cases, the Facility has already made the cash payments for the program expenses. Recommendation: The Facility should prepare and submit vouchers on a timely basis in accordance with the various grants terms and conditions. Views of Responsible Official and Planned Corrective Action: The Chief Executive Officer and Chief Financial Officer will ensure that all vouchers are prepared, reviewed and submitted on a timely basis.

Categories

Cash Management Significant Deficiency

Other Findings in this Audit

  • 15938 2022-001
    Material Weakness Repeat
  • 15939 2022-002
    Significant Deficiency
  • 15940 2022-003
    Significant Deficiency
  • 15941 2022-004
    -
  • 15942 2022-001
    Material Weakness Repeat
  • 15944 2022-003
    Significant Deficiency
  • 15945 2022-004
    -
  • 592380 2022-001
    Material Weakness Repeat
  • 592381 2022-002
    Significant Deficiency
  • 592382 2022-003
    Significant Deficiency
  • 592383 2022-004
    -
  • 592384 2022-001
    Material Weakness Repeat
  • 592385 2022-002
    Significant Deficiency
  • 592386 2022-003
    Significant Deficiency
  • 592387 2022-004
    -

Programs in Audit

ALN Program Name Expenditures
14.218 Community Development Block Grants/entitlement Grants $444,565
16.575 Crime Victim Assistance $185,170
93.959 Block Grants for Prevention and Treatment of Substance Abuse $161,642
93.926 Healthy Start Initiative $135,140
93.778 Medical Assistance Program $123,734
17.259 Wia Youth Activities $62,113
14.252 Section 4 Capacity Building for Community Development and Affordable Housing $35,765
93.940 Hiv Prevention Activities_health Department Based $30,970
93.994 Maternal and Child Health Services Block Grant to the States $23,977