Finding Text
Condition: During our audit procedures over reporting requirements, we discovered that there was an overall under reporting of expenses on the Federal Financial Report. Criteria: In order to maintain accurate reporting to granting agencies, when changing format of reports used to complete filings, these reports should be reviewed for accuracy. Statement of Cause: The original reports were financial statements that did not capture all the general ledger entries. The reports that were provided during the testing were general ledger transactions as well as the original reports used in making those draws, filing reports to the agency, which is when Communicare realized the financial statements for that grant didn?t catch all the general ledger transactions. The duplicates were on some of the original general ledger transaction listings that were used to complete the draws after Communicare switched from using the grant financial statement to the general ledger transaction listing. Indication of Repeat Finding: This is a repeat finding of Finding 2021-001. Statement of Effect: Communicare could not provide report used when preparing report for filing or rerun the exact report to agree back to the Federal Financial Report that was filed. Questioned Costs: No questioned costs were identified for Section 223 Demonstration Programs to Improve Community Mental Health Services (#93.829). Perspective Information: Differences occurred because Communicare switched format of support when completing the Federal Financial Report. Communicare will keep report used when completing reports filed with federal agencies. If format of reports are switched or rerun, they will be reviewed for any duplicated information. The difference of overall expenses in the report rerun compared to the Federal Financial Report is $63,302. The audit finding represents an isolated incident. Recommendation: We recommend that Communicare review the general ledger transaction listing and remove duplicates to ensure proper reporting to granting agencies. Views of Responsible Officials: Beginning November 2022, all financial reports used in grant reporting will be checked against general ledger transactions prior to finalizing the reports to outside agencies. Reports will also be ran to check against year-to-date totals to ensure any reclassed transactions are caught prior to finalizing any reports to outside agencies.