Finding Text
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: Non-federal entities must establish policies and procedures to comply with financial reporting requirements for grants within the federal program.
Condition: During testing of required financial reports, we noted differences in the amounts of expenses reported to grantors compared to actual expenses incurred during those periods.
Cause: Sufficient internal controls for reimbursement requests have not been implemented to ensure expenses reported to grantors agrees to actual expenses incurred during the period.
Effect or Potential Effect: Noncompliance with grant reporting requirements may occur.
Context: A sample of 6 financial reports was selected for testing from a population of 10 financial reports. The testing found 1 financial report that reported expenses for the period incorrectly. In addition, we noted 2 grant reimbursement requests that reported expenses for the period incorrectly.
Repeat Finding: No
Recommendation: Additional internal controls for reimbursement requests should be implemented, including having another individual outside the process review and approve financial reports prior to submission or require detailed accounting expense transactions be included with financial reports to ensure expenses reported to grantors agree to expenses actually incurred.
Views of Responsible Officials: Management agrees with the finding and the Organization and outsourced accounting rep will meet monthly to review cost reports and correlating invoices together before approving and submitting to the funder to ensure proper expense reporting.