Finding 370418 (2022-002)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-02-23

AI Summary

  • Core Issue: BestCare lacks clear policies and processes to monitor compliance with federal requirements for grant funds.
  • Impacted Requirements: Compliance with cash management, procurement, and allowability of costs as outlined in Uniform Grant Guidance.
  • Recommended Follow-Up: Train staff on federal requirements and develop comprehensive policies to ensure ongoing compliance.

Finding Text

Criteria: Per section 200.302b of the Uniform Grant Guidance, the financial management system must provide written procedures to implement the requirements related to cash management, procurement, and allowability of costs in accordance with requirements of Uniform Grant Guidance. Per section 200.303, the organization must also evaluate and monitor their compliance with statutes, regulations, and the terms and conditions of Federal awards. Condition: BestCare receives federal funds as portions of County agreements. The amount of federal funds included in the award is not provided to BestCare until the end of the fiscal year. Those responsible for monitoring compliance of these awards have knowledge of the award itself but may not have knowledge of the federal requirements. Cause: Management was not able to determine what award amounts were subject to federal requirements until year end. Effect: BestCare could be out of compliance on some requirements due to lack of policy and process to monitor compliance. Questioned Costs: None Recommendation: Management should ensure that all personnel responsible for monitoring grant compliance receive the proper training on the requirements for federal funds. BestCare should develop policies and procedures to ensure compliance with both grant and federal requirements. Response: BestCare is working with an outside consulting company to put systems in place to monitor contract revenue and their reporting requirements. The work with the outside consulting company also includes staff training to inform and document the processes need to ensure compliance with procurement and reporting requirements.

Corrective Action Plan

Federal Award Compliance Recommendation: Management should ensure that all personnel responsible for monitoring grant compliance receive the proper training on the requirements for federal funds. BestCare should develop policies and procedures to ensure compliance with both grant and federal requirements. Action Taken: BestCare hired a CFO June 27, 2023. She has significant experience with federal awards and is implementing policies and procedures to ensure compliance. BestCare is also in the final stages of hiring a Controller which will bolster procedures to comply with federal awards. Finally, another staff accountant was hired November 13, 2023 to round out an understaffed accounting team which will allow the Controll and Sr. Accountant to focus more on processes, internal controls and compliance.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Cash Management Reporting

Other Findings in this Audit

  • 370419 2022-003
    Significant Deficiency Repeat
  • 370420 2022-003
    Significant Deficiency Repeat
  • 946860 2022-002
    Significant Deficiency Repeat
  • 946861 2022-003
    Significant Deficiency Repeat
  • 946862 2022-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $803,487
93.788 Medical Assistance Program $635,400
93.959 Block Grants for Prevention and Treatment of Substance Abuse $333,649
93.498 Provider Relief Fund $265,804
93.958 Block Grants for Community Mental Health Services $9,997