Finding 23193 (2022-001)

-
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2022-12-05
Audit: 19607
Organization: Vaya Health (NC)
Auditor: Cla

AI Summary

  • Core Issue: An employee received a travel reimbursement that exceeded the established per diem rate.
  • Impacted Requirements: Disbursements must be reviewed for accuracy to prevent unauthorized reimbursements.
  • Recommended Follow-Up: Implement a review process to ensure all travel reimbursements comply with the Organization's policy.

Finding Text

2022 ? 001 Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Block Grant for Community Mental Health Services CFDA Number: 93.958 Pass-Through Agency: North Carolina Department of Health and Human Services Pass-Through Number(s): N/A Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Other Matter Criteria or Specific Requirement: In order to prevent unauthorized travel reimbursements to employees, disbursements must be reviewed for accuracy. Condition: During our testing, we noted that a reimbursement was paid to an employee at a higher rate than the established per diem rate in the Organization?s policy. Questioned Costs: $1.25 Context: The identified finding represented 1 of 40 of the travel reimbursements sampled. Cause: Reimbursement was not reviewed prior to payment being made. Effect: An employee was reimbursed for travel expenses in excess of the Organization?s policy. Repeat Finding: The finding is not a repeat of a finding in the immediately prior year. Recommendation: The Organization should design controls to ensure an adequate review process is in place to ensure that employee travel reimbursements are appropriate. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

2022-001 Block Grants for Community Mental Health Services ? CFDA No. 93.958 Recommendation: The Organization should design controls to ensure an adequate review process is in place to ensure that employee travel reimbursements are appropriate. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization?s Finance Department will implement a process to audit employee travel reimbursements in order to ensure employees are paid in accordance with the Organization?s policy. Additionally, the Organization will simplify its policy to reflect a flat per diem rate rather that a rate specific to the area traveled to reduce the risk of error related to calculation complexity. On July 27th, 2021, the Organization implemented an additional level of review of Executive Leadership Team (ELT) employee expense reports. The specific incident that resulted in a finding related to an ELT employee expense report that was processed prior to date this change was implemented. Name of the contact person responsible for corrective action: Larry Hill CFO Planned completion date for corrective action plan: 12/31/22

Categories

Questioned Costs Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.959 Block Grants for Prevention and Treatment of Substance Abuse $8.10M
93.788 Opioid Str $7.63M
93.958 Block Grants for Community Mental Health Services $6.34M
14.267 Continuum of Care Program $734,919
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $647,990
21.027 Coronavirus State and Local Fiscal Recovery Funds $585,460
93.667 Social Services Block Grant $564,264
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $435,061
97.032 Crisis Counseling $197,664