FAC Explorer

Finding 403177 (2023-101)

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Requirement
A
Questioned Costs
-
Year
2023
Accepted
2024-06-27
Audit: 310342
Organization: Valley Health Systems, Inc. (MA)
Auditor: Baker Newman & Noyes LLC

AI Summary

  • Core Issue: One expense reimbursement improperly included alcohol, which is unallowable under federal guidelines.
  • Impacted Requirements: The Organization must adhere to Uniform Guidance by submitting only allowable costs for reimbursement.
  • Recommended Follow-Up: Implement a consistent review process for expense receipts to prevent future submissions of unallowable costs.

Finding Text

Unallowable Costs ‑ Federal Agency: U.S. Department of Health and Human Services; Award Name: HIV Care Formula Grant (Ryan White HIV/AIDS Program Part B); Program Year: July 1, 2022 to June 30, 2024; ALN No.:93.917: Criteria: The Organization must submit only allowable costs for reimbursement under the accounting principles contained in Uniform Guidance. Condition: During compliance testing, it was noted that one out of twenty five selections improperly included alcohol in the balances submitted for expense reimbursements. Context: One expense reimbursement was found to have reimbursed alcohol. Cause: There was a lack of consistent review of the receipt before submission for expense reimbursement. Effect: As a result of the condition, one reimbursement was overpaid. Recommendation: In the future, the Organization should review reimbursements closely to ensure unallowable costs are not submitted for reimbursement. Views of Responsible Officials: Management acknowledges the finding and will take action to ensure that no unallowable costs are being reimbursed.

Corrective Action Plan

Unallowable Costs Criteria: The Organization must submit only allowable costs for reimbursement under the accounting principles contained in Uniform Guidance. Condition: During compliance testing, it was noted that one out of twenty five selections improperly included alcohol in the balances submitted for expense reimbursements. Context: One expense reimbursement was found to have reimbursed alcohol. Cause: There was a lack of consistent review of the receipt before submission for expense reimbursement. Effect: As a result of the condition, one reimbursement was overpaid. Recommendation: In the future, the Organization should review reimbursements closely to ensure unallowable costs are not submitted for reimbursement. Contact: Erin Spaulding, Senior Director of Finance. Corrective Actions Taken or Planned: Management acknowledges the finding and will take action to ensure that no unallowable costs are being reimbursed.

Categories

Allowable Costs / Cost Principles Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $10.61M
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $1.94M
93.958 Block Grants for Community Mental Health Services $665,509
93.959 Block Grants for Prevention and Treatment of Substance Abuse $448,340
93.917 Hiv Care Formula Grants $421,780
14.267 Continuum of Care Program $277,757
14.241 Housing Opportunities for Persons with Aids $246,038
93.788 Opioid Str $215,942
32.006 Covid-19 Telehealth Program $33,090