Finding 401542 (2023-002)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-06-22

AI Summary

  • Core Issue: Incorrect subtotaling of units billed for parenting skills classes indicates a significant deficiency in compliance.
  • Impacted Requirements: Internal controls must ensure that amounts billed to federal agencies are accurate and supported by participant attendance documentation.
  • Recommended Follow-Up: Management should review and improve internal controls over billing processes, involving knowledgeable staff in compliance checks.

Finding Text

Condition: During our testing of compliance billing of units of parenting skills classes to Stark County Department of Job and Family Services, we noted out of a sample to 40 participant billings, the number of units billed for 3 of the 40 were subtotaled incorrectly. We consider this instance to be a significant deficiency over compliance relating to allowable and unallowable activities. Criteria: Internal controls should be in place to ensure amounts billed to federal agencies are accurate and supported by documentation of a participant’s attendance. Cause: Internal control procedures are not designed effectively to detect and correct errors in billing units of the parenting skills program prior to submission to the grantor. Effect: As a result of the deficiency noted above, audit procedures identified certain over‐billings to the grantor. Context: A sample of 40 billing units totaling $41,221 was selected for testing from a population of total units billed of $231,685. The test found errors in 3 billings totaling $477. Statistical sampling was not used in making sample selections. Recommendation: We recommend management review current internal controls and ensure they are designed effectively over billing of parenting skills units, including review by an employee knowledgeable of compliance requirements.

Corrective Action Plan

In 2024 the manual component of the calculations has been eliminated and all calculations of billing units are now completed using an Excel spreadsheet.

Categories

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 401538 2023-003
    Significant Deficiency
  • 401539 2023-003
    Significant Deficiency
  • 401540 2023-003
    Significant Deficiency
  • 401541 2023-003
    Significant Deficiency
  • 977980 2023-003
    Significant Deficiency
  • 977981 2023-003
    Significant Deficiency
  • 977982 2023-003
    Significant Deficiency
  • 977983 2023-003
    Significant Deficiency
  • 977984 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.218 Community Development Block Grants/entitlement Grants $120,176
16.575 Crime Victim Assistance $89,968
93.136 Injury Prevention and Control Research and State and Community Based Programs $71,940
17.259 Wia Youth Activities $55,578
93.558 Temporary Assistance for Needy Families $48,311
93.497 Family Violence Prevention and Services/ Sexual Assault/rape Crisis Services and Supports $26,054
93.991 Preventive Health and Health Services Block Grant $10,277
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $4,683