Finding Text
2022-001 Quarterly Reporting Type of Finding - Material Weakness in Internal Control Over Compliance Department of Health and Human Services 93.558 Temporary Assistance for Needy Families Compliance Requirement: Reporting -Criteria - 2 CFR 200.303 states that a non-Federal Entity must establish and maintain effective internal controls over the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. -Condition - EmberHope, Inc. submits status reports quarterly to the State of Kansas Department for Children and Families (KS-DCF) that provides updates on specifically established objectives as agreed to with the State of Kansas. The reports submitted were not reviewed prior to submission. -Cause - The process for submitting the quarterly status reports did not include a review of the reports for timeliness, completeness, and accuracy by somone independent of the report preparation. -Effect - EmberHope, Inc. quarterly status reports could be filed untimely and contain incomplete and/or inaccurate information. -Questioned Costs - Not applicable. -Context - During the year ended June 30, 2022, EmberHope, Inc. submitted four quarterly reports. We selected one report for detail testing and found no exceptions to our tests. -Identification as a Repeat Finding - Not applicable. -Recommendation - EmberHope, Inc. should require a review of the quarterly status reports prior to submission to KS-DCF to reduce the risk of incomplete or inaccurate information. The review should also include procedures to ensure timely submission of accurate reports. -Views of Responsible Official - EmberHope, Inc. agrees with the finding and is updating the internal control environment to include a review of the quarterly reports prior to submission.