Finding 442866 (2022-004)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-03-09
Audit: 312506
Organization: United Way of Greater Cleveland (OH)
Auditor: Bdo

AI Summary

  • Core Issue: An expense was submitted for reimbursement twice, leading to an overpayment of $144.
  • Impacted Requirements: Costs must be adequately documented as per Federal regulations (CFR 200.403(g)).
  • Recommended Follow-Up: Enhance internal controls to ensure compliance with cost documentation and reimbursement policies.

Finding Text

2022-004 ? Activities Allowed or Unallowed; Allowable Cost/Cost PrinciplesIdentification of the Federal Program:Governmental Department/Agency:Department of Health and Human Services (HHS),Centers for Medicare & Medicaid ServicesAssistance Listing Number: 93.650Award Number: 1P1CMS331584-05-00Award Year: 5/01/2021 ? 12/31/2022Criteria ? The Code of Federal Regulations 200.403(g) states that for costs to be allowed under Federal awards, they must be adequately documented and there must be sufficient documentation.Condition ? Through testing 12 expense transactions for the allowable costs and period of performance compliance requirements, we noted an expense that was an exception. The expense related to an invoice that was expensed twice, once in July 2021 and a second time in September 2021. The Organization did not adequately reverse this transaction, which resulted in excess costs submitted for reimbursement in September 2021.Cause ? Policies and procedures were not adhered to in certain instances to ensure that costs submitted for reimbursement through the Federal grant were submitted at the correct amounts.Effect ? An ineffective control system related to the charging of costs to federal programs failed to ensure that the amounts charged are for services in the correct amount.Questioned Costs - $144Context ? We sampled 12 items for the AHC program and found 1 exception resulting in an over reimbursement of $144. This is a condition identified per review of the Organization?s compliance with specified requirements using a statistically valid sample.Repeat Finding ? This is not a repeat finding.Recommendation ? We recommend that the Organization continues to review and improve its internal control over allowed and allowable costs to ensure its policies and procedures follows the compliance requirements of Federal regulations.Views of Responsible Officials and Planned Corrective Actions ? The Organization concurs with the finding and the recommendation. The Organization?s corrective action plan is described in Management?s Corrective Action Plan included at page 58 of this reporting package.

Corrective Action Plan

Vendor invoice processing is performed by the Accounting Coordinator who inputs pertinent invoice data into the accounting software for payment. The UWGC Senior Director of Finance or in her absence the UWGC Chief Financial Officer will provide a secondary level of review to verify invoices are applied to the correct period for the correct amount after the Accounting Coordinator inputs the data to ensure that Federal funds are reimbursed accurately and in the appropriate period.

Categories

Questioned Costs Allowable Costs / Cost Principles Cash Management Period of Performance Reporting

Other Findings in this Audit

  • 442864 2022-002
    Significant Deficiency
  • 442865 2022-003
    Significant Deficiency
  • 442867 2022-005
    Significant Deficiency
  • 442868 2022-002
    Significant Deficiency
  • 442869 2022-002
    Significant Deficiency
  • 442870 2022-002
    Significant Deficiency
  • 442871 2022-002
    Significant Deficiency
  • 442872 2022-002
    Significant Deficiency
  • 442873 2022-002
    Significant Deficiency
  • 442874 2022-002
    Significant Deficiency
  • 442875 2022-002
    Significant Deficiency
  • 442876 2022-002
    Significant Deficiency
  • 442877 2022-002
    Significant Deficiency
  • 1019306 2022-002
    Significant Deficiency
  • 1019307 2022-003
    Significant Deficiency
  • 1019308 2022-004
    Significant Deficiency
  • 1019309 2022-005
    Significant Deficiency
  • 1019310 2022-002
    Significant Deficiency
  • 1019311 2022-002
    Significant Deficiency
  • 1019312 2022-002
    Significant Deficiency
  • 1019313 2022-002
    Significant Deficiency
  • 1019314 2022-002
    Significant Deficiency
  • 1019315 2022-002
    Significant Deficiency
  • 1019316 2022-002
    Significant Deficiency
  • 1019317 2022-002
    Significant Deficiency
  • 1019318 2022-002
    Significant Deficiency
  • 1019319 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.650 Accountable Health Communities $779,917
93.667 Social Services Block Grant $285,830
93.558 Temporary Assistance for Needy Families $227,425
21.019 Coronavirus Relief Fund $150,254
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $116,532
93.268 Immunization Cooperative Agreements $105,218
93.052 National Family Caregiver Support, Title Iii, Part E $61,737
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $32,235
93.738 Pphf: Racial and Ethnic Approaches to Community Health Program Financed Solely by Public Prevention and Health Funds $15,614
14.218 Community Development Block Grants/entitlement Grants $404