Finding 45949 (2022-001)

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Requirement
L
Questioned Costs
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Year
2022
Accepted
2023-09-07
Audit: 41532
Organization: Circles of Care INC (FL)

AI Summary

  • Core Issue: The Organization failed to submit accurate and timely financial data, with audited reports sent 15 months late.
  • Impacted Requirements: Reports to HHS and DCF must be submitted within 6 months of fiscal year-end, and monthly reports for Crisis Prevention and Stabilization were also inaccurate.
  • Recommended Follow-Up: Improve internal controls for reporting, enhance staff training, and investigate any discrepancies before submission.

Finding Text

2022-001 Financial Reporting State Opioid Response Discretionary Grant AL # 93.788 Coronavirus Relief Fund AL # 21.019 SAMH - Crisis Prevention and Stabilization CSFA # 60.155 Other matter required to be reported in accordance with Uniform Guidance Condition: The Organization did not submit unaudited financial data in an accurate and timely manner to oversight organizations. The audited financial data was submitted to the U.S. Department of Health and Human Services and the State Department of Children and Families 15 months after the Organization?s fiscal year end. In addition, there was an error discovered in the initial reporting related to the Crises Prevention and Stabilization monthly reports that was noted during our audit procedures. Context: The Organization?s audited submission is required to be sent to the U.S. Department of Health and Human Services and State Department of Children and Families 6 months after their fiscal year-end (December 31st). The Organization is also required to submit monthly reports to the State Department of Children and Families in relation to their expenditures for Crisis Prevention and Stabilization. Criteria: In accordance with HHS and DCF rules and regulations, the Organization is required to submit certain data in accordance with their regulations in an accurate and timely manner. Cause: During the year, certain personnel and software issues arose to cause an error and a delay in internally generated reports used to create the submissions for both HHS and DCF. Effect: The submissions were not submitted in an accurate and timely manner. In addition, HHS and DCF could not provide timely financial oversight. Auditor?s Recommendations: The Organization should continue to develop and implement internal controls over both internal and external reporting, and the year-end close process to ensure reporting remains accurate and timely, with any unexpected financial date being investigated and corrected before it is reported. The Organization should consider additional staff training on various reporting requirements.

Corrective Action Plan

September 8, 2023 U.S. Department of Health and Human Services, State Department of Children and Families Circles of Care, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2022. Berman Hopkins Wright & LaHam, CPAs and Associates, LLP 8035 Spyglass Hill Road Melbourne, FL 32940 Audit period: July 1, 2021 - June 30, 2022 The findings from the June 30, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS - FEDERAL AWARDS 2022-001 Financial Reporting State Opioid Response Discretionary Grant AL # 93.788 Coronavirus Relief Fund AL# 21.019 SAMH - Crisis Prevention and Stabilization CSFA # 60.155 Other Matter required to be reported in accordance with Government Auditing Standards Condition: The Organization did not submit unaudited financial data in an accurate and timely manner to oversight organizations . The audited financial data was submitted to the U.S. Department of Health and Human Services and State Department of Children and Families 15 months after the Organization's fiscal year-end. In addition, there was an error discovered in the initial reporting related to the Crisis Support monthly reports that was noted during our audit procedures. Auditor Recommendations: The Organization should continue to develop and implement internal controls over both internal and external reporting, and the year-end close process to ensure reporting remains accurate and timely, with any unexpected financial data being investigated and corrected before it is reported. The Organization should consider additional staff training on various reporting requirements. Action Taken: Circles of Care is engaging in additional technical assistance that includes ongoing training in required DCF financial forms. To wit, a training meeting facilitated by the CFO of Central Florida Cares Health System (CFCHS) on CF-MH 1037 and Associated Audit is scheduled for 9/11/2023 and will be attended by the organization's CFO, William Vintroux, and also the VP of Business & Finance, Henry Lin. Additionally, the necessary resources to complete the document in a timely fashion will be allocated during the year. The organization's CIO, Iris Garcia, is responsible for testing programming code for the accurate reporting of contractual services to the Managing Entity, CFCHS. To better identify programming errors, additional resources within the Information Technology department will be allocated to routinely test services prior to monthly reporting.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.958 Block Grants for Community Mental Health Services $4.81M
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1.99M
93.788 Opioid Str $1.82M
93.558 Temporary Assistance for Needy Families $312,320
93.150 Projects for Assistance in Transition From Homelessness (path) $172,593
21.019 Coronavirus Relief Fund $104,167