Finding 453160 (2022-004)

Material Weakness

Requirement

Questioned Costs

Year

2022

Accepted

2023-07-09

Audit: 313666

Organization: Creative Health Services, Inc. (PA)

Auditor: Barbara A Akins CPA

AI Summary

Core Issue: Creative Health Services, Inc. did not follow the reporting rules for federal grant funding.
Impacted Requirements: Unallowable costs were included in reimbursement requests, leading to inaccurate financial reporting.
Recommended Follow-Up: Assign a staff member to review grant documents regularly to ensure compliance with all requirements.

Finding Text

Creative Health Services, Inc.?s did not comply with the reporting requirements for Assistance No. 93.958 Black Grants for Community Mental Health Services.CriteriaChief Financial Officer prepares the monthly reimbursement request for how funds were expended.ConditionUnallowable costs were included in the monthly reimbursement request.EffectThe expenditures of federal awards were materially misstated.CauseExpenses included were not reconciled with allowable expenses per the grant contract.RecommendationA staff member should be dedicated to reviewing grant documents to ensure compliance with grant requirements.

Corrective Action Plan

View of Responsible Officials and Planned Corrective ActionThe Organization is planning to assign responsibility of grant compliance to someone in the Organization.

Other Findings in this Audit

1029602 2022-004

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
93.958	Block Grants for Community Mental Health Services	$768,467
93.498	Provider Relief Fund	$429,274
93.959	Block Grants for Prevention and Treatment of Substance Abuse	$277,565
93.243	Substance Abuse and Mental Health Services_projects of Regional and National Significance	$109,414
93.778	Medical Assistance Program	$47,215