Finding 367055 (2022-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2024-02-13

Audit: 290222

Organization: Mental Health & Addiction Association of Oregon (OR)

Auditor: Aldrich CPAS + Advisors

AI Summary

Issue: A quarterly financial report was submitted late due to management's lack of awareness about the necessary application for Payment Management System access.
Requirements Impacted: Reports must be submitted on time as per 2 CFR 200.329, and no extension request was made.
Follow-Up: Management should proactively request extensions when delays are anticipated and ensure reports are submitted by the original due date if extensions are not granted.

Finding Text

2022-002 Report Submission Delay Program: 17.270 Reentry Employment Opportunities Criteria: In accordance with 2 CFR 200.329, non-Federal entities must submit quarterly financial reports at the interval required by the Federal awarding agency or pass-through entity no later than the specified due date. If a justified request is submitted by a non-Federal entity, the Federal agency may extend the due date for any quarterly financial report. Condition: During our audit, we identified one quarterly financial report that was submitted to the Contracting Officer’s Representative (COR) after the stated due date. Cause: During the reporting period, the Organization’s management was not aware that a user application was needed to be submitted and approved in order to gain access to the Payment Management System (PMS). The delay in obtaining PMS access caused management’s delay in submitting the required quarterly financial report. Effect: Report was not submitted to the COR in a timely manner and a request for extension of the due date was not made. Questioned Costs: None noted. Context: The report was due to the COR within 45 days of the reporting period end and was submitted one day after the stated due date. Repeat Finding: No. Recommendation: When timely submission may not be possible, the Organization should request an extension from the COR by providing a notice of the delay and rationale for the late report, and, if approved, submit the report by the extended deadline. When extensions are not granted, the Organization should submit reports by the initial stated due date. Views of Responsible Officials: Management agrees with the finding and a response is included in the corrective action plan.

Corrective Action Plan

2.) Finding 2020-002 Report Submission Delay a. Program Information: 17.270 Reentry Employment Opportunities b. Criteria: In accordance with 2 CFR 200.329, non-Federal entities must submit quarterly financial reports at the interval required by the Federal awarding agency or pass-through entity no later than the specified due date. If a justified request is submitted by a non-Federal entity, the Federal agency may extend the due date for any quarterly financial report. c. Condition: During our audit, we identified one quarterly financial report that was submitted to the Contracting Officer’s Representative (COR) after the stated due date. Response: Explanation: This delay was due to an unawareness of process limitations regarding the user application process for the Payment Management System (PMS), which is required for any new Finance Director. A formal application and access request form needs to be submitted along with documentation to support the request for access (including proof of identity, proof of employment, and role confirmation). These conditions, along with the 24-72 hour processing time required to get a user application approved by the PMS providers, led to our one-day-late submission of the required quarterly financial report. Corrective Action: We have established a more proactive approach to managing reporting requirements and a protocol for timely submissions of reports. This includes: - Mandatory PMS application processing as part of the early onboarding process for any new Finance Director. - Early preparation of reports, scheduling reviews a month ahead of the submission deadline. - Direct communication lines with the contract administrators and program directors. - Standard procedures identified to request extensions in case of anticipated delays, specific to each contracting agency. Future Measures: Regular training session for our team are planned to help staff stay informed about reporting requirements, procedures, and deadlines. Contact person responsible for corrective action: John Domingo, Finance & IT Director Compleion date: 07/01/2023

Other Findings in this Audit

367054 2022-001

Significant Deficiency
367056 2022-003

Significant Deficiency
943496 2022-001

Significant Deficiency
943497 2022-002

Significant Deficiency
943498 2022-003

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
17.270	Reintegration of Ex-Offenders	$766,734
93.959	Block Grants for Prevention and Treatment of Substance Abuse	$312,987
21.019	Coronavirus Relief Fund	$263,950
93.732	Mental and Behavioral Health Education and Training Grants	$259,796
16.838	Comprehensive Opioid Abuse Site-Based Program	$258,797
21.027	Coronavirus State and Local Fiscal Recovery Funds	$216,322
93.958	Block Grants for Community Mental Health Services	$83,216
93.788	Opioid Str	$69,181
93.778	Medical Assistance Program	$40,193
93.982	Mental Health Disaster Assistance and Emergency Mental Health	$34,588
93.136	Injury Prevention and Control Research and State and Community Based Programs	$22,994