Finding 369345 (2023-003)

2023 – 003- Matching Calculation Federal Agency: Department of Health and Human Services Program Title: Substance Abuse Prevention and Treatment Black Grant (SABG) Assistance Listing Number: 93.959 Award Period: July 1, 2022 – June 30, 2024 -Material Weakness in Internal Control Over Compliance -Other Matters Criteria: The Drug Prevention Resource Center d/b/a InnerAct Alliance’s management is responsible for establishing and maintaining internal controls to ensure that transactions are properly recorded and reported in the financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP). Part of the internal control process includes proper review and documentation of such review of transactions during the normal course of business. Condition: During review of yearly match calculation report, It was noted the match was not correctly reported. Questioned costs: NA Context: InnerAct accidently submitted their mid-year numbers instead of their final year-end report on the annual match report, causing an underreporting of the match. Upon noting the error, which was identified by CLA, InnerAct submitted a modified report. Cause: Lack of proper review. Repeat finding: No Recommendation: We recommend documenting via an approval form with written or electronic signatures designating who is preparing and who is reviewing match form. Views of responsible officials and planned corrective actions: No disagreement.