FAC Explorer

Finding 44580 (2022-001)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-09-25
Audit: 38529
Organization: South Shore Child Guidance Association, Inc. (NY)
Auditor: Baker Tilly US LLP

AI Summary

  • Core Issue: An invoice for $420 was submitted for reimbursement before it was paid, indicating a lapse in cash management controls.
  • Impacted Requirements: This situation violates compliance standards set by the Uniform Guidance for cash management.
  • Recommended Follow-Up: South Shore should establish a robust internal control process for reviewing monthly reimbursement claims.

Finding Text

Finding 2022-001 - Cash Management (Internal Control over Compliance/Compliance) ALN No.: 93.829 - Section 223 Demonstration Programs to Improve Community Mental Health Services Award Year: January 1, 2022 - December 31, 2022 Federal Agency: United States Department of Health and Human Services Pass Through Entity: Not applicable Criteria: Management is responsible for controls and compliance over cash management. Condition/Context: For 1 out of 40 selections, an invoice was claimed for reimbursement prior to being paid by South Shore in the amount of $420. The sampling method was nonstatistical sampling. Cause: There was not proper review and oversight over the individual preparing the monthly claims for reimbursement. Effect: South Shore has not complied with the specific requirements for cash management as described in the Uniform Guidance. Costs may have been claimed for reimbursement prior to being eligible. Questioned Costs: None. Recommendation: South Shore should develop an internal control process for proper preparation and review of the monthly claims for reimbursement. Views of Responsible Officials: Management agrees with the recommendation and plans to put in place an appropriate internal control process.

Corrective Action Plan

Audit Finding Reference Number: 2022-0{) Recommendation - South Shore should enhance its internal control processes related to preparation and review of the monthly claim for reimbursement. Corrective Action Plan - We have adjusted our policies and procedures to assure that every claim submission is reviewed by both the Controller and CFO prior submission. Claim form and appropriate documentation will be submitted to the Controller who will give initial review. Review will consider timeliness of items claimed as well as appropriateness for the particular federal grant. CFO will then provide final authorization in writing to both grants accountant and controller at which time claim for reimbursement can be submitted by grant accountant.

Categories

Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 44581 2022-002
    Significant Deficiency
  • 44582 2022-003
    -
  • 621022 2022-001
    Significant Deficiency
  • 621023 2022-002
    Significant Deficiency
  • 621024 2022-003
    -

Programs in Audit

ALN Program Name Expenditures
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $1.17M
93.788 Opioid Str $100,408