Finding 31267 (2022-004)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-02-26
Audit: 31455
Auditor: Nms INC

AI Summary

  • Core Issue: Incorrectly billed 120 days for youths at Geauga Youth Center to the State Opioid Response Grant, totaling $36,720.
  • Impacted Requirements: Management must maintain internal controls to ensure compliance with federal award provisions, as outlined in Uniform Guidance 2 CFR 200.516a.
  • Recommended Follow-Up: Management should verify the census data at GYC before submitting grant reimbursement requests to prevent future billing errors.

Finding Text

Finding 2022-004: Program name: State Opioid Response Grant (SOR). Federal Assistance Listing Number 93.788 Federal Agency: U.S. Department of Health and Human Services. Award period: 10/1/2021-9/30/2022. Federal Award Number: 2200408 Type of Finding: Significant Deficiency. Criteria: Management is responsible for designing and maintaining a system of internal controls to achieve compliance with provisions of federal awards. Condition: NMS identified 120 days billed to the grant for youths staying at the Geauga Youth Center that were incorrectly billed to the federal grant. Context, Cause and Effect: During our single audit procedures over the SOR grant, we noted 120 days billed to the grant for youths staying at the Geauga Youth Center days in the months of March 2022 through June 2022 when no SOR eligible youths were in attendance per the census. The total charged to the grant was $36,720 which is an audit finding that is required to be disclosed in accordance with Uniform Guidance 2 CFR 200.516a as it represents known questioned costs that are greater than $25,000 for a type of compliance requirement for a major program. Recommendation: We recommend management review the census at the GYC when completing the grant reimbursement request to ensure the number of days billed to the SOR grant is correct. Views of Responsible Official and Planned Corrective Action Plan: Management agrees with this finding. Refer to Corrective Action Plan for additional responses and corrective action plan.

Corrective Action Plan

Finding 2022-004: Allowable Costs - Significant Deficiency in Internal Control over Allowable Costs/Cost principles Official's Response and Corrective Action Plan: Prior accounting staff was gone by December 2021. New financial staff was hired and in place in the 4th quarter of April 2022. We made changes in the accounting department during the past year to improve the overall functionality. Since we tripled our amount of grants, it was necessary to increase the accounting staff to maintain them, as well as increase overall efficiencies. We now have a staff of 4 accountants, as well as a new CFO with nonprofit/grant experience. The late filling of vacant positions delayed some of our internal processes during their training. We added monthly meetings with internal staff to make sure we have a good communication flow and appropriate documentation for new and existing grants which are monitored monthly Anticipated Completion Date: June 30, 2023

Categories

Questioned Costs Cash Management Significant Deficiency Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 607709 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $884,314
93.788 Opioid Str $830,761
93.958 Block Grants for Community Mental Health Services $53,913
93.667 Social Services Block Grant $43,513
14.267 Continuum of Care Program $19,684
93.959 Block Grants for Prevention and Treatment of Substance Abuse $11,593