Finding 22647 (2022-005)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-09-11
Audit: 19281
Organization: Detroit Recovery Project, Inc. (MI)
Auditor: Yeo & Yeo PC

AI Summary

  • Core Issue: Lack of supporting documentation for expenditures, including missing approvals and invoices for multiple transactions.
  • Impacted Requirements: Noncompliance with 2CFR200.403(g), which mandates that expenses must be properly documented and approved.
  • Recommended Follow-Up: Management should implement a review process to ensure all purchases have the necessary documentation and approvals before payment.

Finding Text

Finding 2022-005 ? Supporting Documentation for Expenditures 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: Material Weakness on Internal Controls over Compliance and Material Noncompliance Questioned Cost Amount: None Context / Criteria: 2CFR200.403(g) requires expenses incurred must be for activities allowed under the terms and conditions of the federal award. Condition: During our review of expenditures, we noted transactions that did not have documentation to support the purchase, such as invoices, or documentation to show the purchase was approved prior to payment. For AL 93.243 21 of 50 transactions sampled lacked approvals for the disbursement. Additionally, 4 of 50 transactions lacked evidence for the disbursements. For AL 93.829 1 of 16 transactions sampled lacked evidence for the disbursements and approvals. Cause / Effect: The Organization did not have adequate controls in place to ensure transactions had proper documentation and approval prior to payment. Recommendation: We recommend management review each purchase to ensure it is supported by proper documentation and is properly approved prior to payment. Views of Responsible Officials: Management is in agreement with the finding. Corrective Action Plan: See attached corrective action plan.

Categories

Procurement, Suspension & Debarment Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 22644 2022-005
    Material Weakness
  • 22645 2022-006
    Material Weakness Repeat
  • 22646 2022-007
    Significant Deficiency
  • 22648 2022-007
    Significant Deficiency
  • 22649 2022-006
    Material Weakness Repeat
  • 22650 2022-005
    Material Weakness
  • 22651 2022-006
    Material Weakness Repeat
  • 22652 2022-007
    Significant Deficiency
  • 22653 2022-005
    Material Weakness
  • 22654 2022-006
    Material Weakness Repeat
  • 22655 2022-007
    Significant Deficiency
  • 22656 2022-005
    Material Weakness
  • 22657 2022-007
    Significant Deficiency
  • 22658 2022-006
    Material Weakness Repeat
  • 22659 2022-006
    Material Weakness Repeat
  • 22660 2022-005
    Material Weakness
  • 22661 2022-007
    Significant Deficiency
  • 599086 2022-005
    Material Weakness
  • 599087 2022-006
    Material Weakness Repeat
  • 599088 2022-007
    Significant Deficiency
  • 599089 2022-005
    Material Weakness
  • 599090 2022-007
    Significant Deficiency
  • 599091 2022-006
    Material Weakness Repeat
  • 599092 2022-005
    Material Weakness
  • 599093 2022-006
    Material Weakness Repeat
  • 599094 2022-007
    Significant Deficiency
  • 599095 2022-005
    Material Weakness
  • 599096 2022-006
    Material Weakness Repeat
  • 599097 2022-007
    Significant Deficiency
  • 599098 2022-005
    Material Weakness
  • 599099 2022-007
    Significant Deficiency
  • 599100 2022-006
    Material Weakness Repeat
  • 599101 2022-006
    Material Weakness Repeat
  • 599102 2022-005
    Material Weakness
  • 599103 2022-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.732 Mental and Behavioral Health Education and Training Grants $353,840
93.939 Hiv Prevention Activities_non-Governmental Organization Based $272,702
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $185,016
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $121,144
16.812 Second Chance Act Reentry Initiative $103,678