Finding 384020 (2023-001)

Material Weakness
Requirement
AB
Questioned Costs
$1
Year
2023
Accepted
2024-03-25

AI Summary

  • Core Issue: The Organization received an overpayment of approximately $586,594 due to errors in billing and lack of supporting documentation for federal funds.
  • Impacted Requirements: Non-compliance with the Fiscal Year 2022-2023 Agreement regarding financial responsibility and record-keeping for Family Support Services.
  • Recommended Follow-Up: Enhance invoice submission processes and provide additional training on documentation requirements to prevent future issues.

Finding Text

This section identifies the audit findings required to be reported by 2 CFR 200.516(a), including significant deficiencies, material weaknesses and material instances of noncompliance, including questioned costs and material abuse involving federal awards that are material to a major federal program. Finding No. 2023-01: Name of Federal Agency: Department of Health and Human Services Name of Pass Through Entity: Westmoreland County Children, Youth and Family Program Name: Temporary Assistance for Needy Families Assistance Listing No: 93.558 Condition During 2023, the Organization was notified upon completion of a Fiscal and Program File Review performed by an awarding agency, related to one of their Family Support Services programs, that errors were identified and supporting documentation was not readily available. As a result, the awarding agency determined these to be errors in billing and represented an overpayment. Criteria The Organization did not comply with the contractual arrangements and was non-compliant with a number of provisions of the Fiscal Year 2022-2023 Agreement with an awarding agency concerning financial responsibility and maintaining complete and accurate records related to one of their Family Support Services programs. Cause Upon initial review, there was insufficient understanding and training on the awarding agency’s documentation requirements. Effect The Organization is believed to have received an overpayment in the amount of approximately $586,594 due to lack of sufficient support for amounts billed and paid when compared to the awarding agency verified amount. Questioned Costs Approximately $586,594 of costs to be reimbursed to the awarding agency. Recommendation Management should improve processes surrounding submission of monthly invoices to include all required documentation to sufficiently support all items included within the invoice. Additional training should occur to ensure all individuals involved are aware of the requirement specified by the awarding agency. Reporting Views of Responsible Officials Management concurs with this finding and recommendation. See separate corrective action plan document.

Corrective Action Plan

Finding Reference Number 2023-001 Description of Finding: The Children's Institute (CI) was non-compliant in maintaining contractual obligations established by the Fiscal Year 2022-23 Agreement with an awarding agency concerning financial responsibility and maintaining accurate and complete records for one of CI's Family Support Services (FSS) programs. Statement of Concurrence or Nonconcurrence CI leadership has reviewed the 2023-001 findings and concur with the recommendations stated. Corrective Action: Training: 1. FSS managers and supervisors were trained on billing reconciliation process, June-July 2023. 2. The Chief Program Officer, in collaboration with the Director of Compliance, will oversee the development of a training program for all current and new hire FSS employees for billing and documentation requirements by December 31, 2023. Process Improvement: 1. Monthly office billing reconciliation process was developed by FSS leadership and CI Finance team and implemented, July 2023. 2. The Chief Program Officer, in collaboration with the Director of Compliance, will develop a policy around billing reconciliation by November 15, 2023. Monitoring: 1. The COO, in collaboration with the Director of Compliance, will create a task force by November 15, 2023, to oversee development of documentation and billing policy and procedure, training and auditing standards. 2. CI executive leadership will contract with an external auditing firm to perform a baseline billing and documentation audit and prepare recommendations for process improvements on all remaining FFS programs. 3. A 20% random sample of case files, for the FSS program referenced in these findings, will be internally audited quarterly for accuracy and completeness of billing and documentation, to begin by November 30, 2023. CI will extend these internal auditing practices to all FSS programs after baseline external audits are complete.

Categories

Questioned Costs Material Weakness Reporting Special Tests & Provisions

Other Findings in this Audit

  • 384021 2023-001
    Material Weakness
  • 384022 2023-001
    Material Weakness
  • 384023 2023-001
    Material Weakness
  • 960462 2023-001
    Material Weakness
  • 960463 2023-001
    Material Weakness
  • 960464 2023-001
    Material Weakness
  • 960465 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $156,678
93.558 Temporary Assistance for Needy Families $108,018
84.027 Special Education_grants to States $87,830