Finding Text
Finding 2022-007 ? Reimbursement of Federal Awards Program Name: Substance Abuse and Mental Health Services ? Projects of Regional and National Significance ? Assistance Listing 93.243 Section 223 Demonstration Programs to Improve Community Mental Health Services ? Assistance Listing 93.829 Awarding Agency: U.S. Department of Health and Human Services, passed through Substance Abuse and Mental Health Services Administration, 2022 Finding Type: Significant Deficiency on Internal Controls over Compliance and Material Noncompliance Questioned Cost Amount: None Context / Criteria: 2CFR200.305(b)(3) requires expenses for reimbursement grants to be incurred and paid before reimbursement is requested. Condition: During our review of profit and loss statements for the federal grants to be included on the SEFA, it was noted that revenue exceeded expenditures for the reimbursement grants. Cause / Effect: The Organization did not have adequate controls in place to ensure expenditures were paid prior to requesting reimbursement. Management recorded the revenue in excess of expenses as refundable advance for the year ended September 30, 2022. Recommendation: We recommend management review reimbursement requests prior to submitting them to ensure the expenditures were paid prior to requesting reimbursement. Views of Responsible Officials: Management is in agreement with the finding. Corrective Action Plan: See attached corrective action plan.