Finding 386223 (2023-001)

Improve Controls Over Reporting Federal Program Information Federal Agency: U.S. Department of Health and Human Services Cluster/Program: Aging Cluster Award Name: BEAS Nutrition Services AL Number: 93.043, 93.044, 93.053 Award Year: 2023 Compliance Requirement: Reporting Type of Finding Compliance Internal Control over Compliance - Significant Deficiency Criteria or Specific Requirement The requirements that apply to reporting are contained in Financial Reporting, 2 CFR section 200.328, Monitoring and Reporting, 2 CFR section 200.329, program legislation, the Transparency Act, federal awarding agency regulations, and the terms and conditions of the award. Grantees must provide reasonable assurance that required reports for federal awards include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Management of Rockingham Nutrition and Meals on Wheels Program is also responsible for establishing and maintaining effective internal control over compliance with federal requirements that have a direct and material effect on a federal program. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. Condition and Context Three of the total of twelve required quarterly program service reports were selected for review in order to determine if Rockingham Nutrition and Meals on Wheels Program complied with the federal and grant award-specific reporting requirements, and if internal control over compliance was appropriately designed, implemented and effectively operating. As a result of this review, discrepancies were noted between what was reported on the quarterly reports for revenues as compared to the general ledger in the amount of $189,744. Cause Weakness in the design and operation of controls. Effect or Potential Effect Due to the weaknesses in internal controls noted above, Rockingham Nutrition and Meals on Wheels Program did not properly report the required amount of revenues on the quarterly program service reports. Questioned Costs No questioned costs are reported as this requirement relates to revenue reported. Recommendation Rockingham Nutrition and Meals on Wheels Program should address the weakness in internal controls noted above in order to comply with the federal requirements related to reporting. Views of Responsible Official Management agrees with the finding. Planned Corrective Action Management’s corrective action plan is included at the end of this report after the Schedule of Prior Year Findings.