Finding Text
Criteria
The Center should establish internal controls that enable management and employees to prevent, detect, and
correct material misstatements on a timely basis. This includes ongoing monitoring of the accumulation of
expenses for which reimbursements are requested under contractual agreements with funding agencies.
Condition
In testing compliance with contracts and grant agreements related to the CCBHC program, the Center was unable
to provide a detailed listing of expenditures charged under the grant nor an accurate reconciliation between grant
drawdowns and expenditures.
Cause
The errors were due to improper internal controls over the monthly reconciliations of grant expenditures to grant
budget and drawdowns. The reconciliations that were provided were incomplete and included various formula
adjustments and errors, as well as amounts without accurate descriptions.
Effect or Potential Effect
Because of the lack of monitoring the monthly reconciliations, errors in calculating the reimbursable expenses
could result in overpayment or underpayment by the funding agency.
Context
The Center requested reimbursement for expenses without a detailed and accurate reconciliation of the requested
amounts. The adjustments included within the reconciliations may have resulted in certain allowable expenditures
not being charged under the grant. The net effect of these issues did not result in a material difference between
revenue and expenses for the CCBHC program.
Recommendation
In order to monitor the status of the CCBHC contract revenues and expenses, we recommend that the Center
reconcile the general ledger accounts for CCBHC expenses to the requests for reimbursements on a monthly basis.
Additionally, we recommend the reconciliation be reviewed by another employee. This will help prevent errors in
reimbursement requests and will simplify future reconciliations.