Finding 478575 (2023-001)

- Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-07-16

AI Summary

  • Core Issue: CoC failed to submit audited financial data on time, sending it 12 months after the fiscal year-end instead of the required 6 months.
  • Impacted Requirements: Timely submission is mandated by HHS and federal regulations, with deadlines of 6 months for HHS and 9 months for the Federal Clearinghouse.
  • Recommended Follow-Up: CoC should enhance internal controls for reporting and provide staff training to ensure compliance with submission deadlines.

Finding Text

Condition: CoC did not submit audited 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 12 months after the CoC’s fiscal year end. Context: CoC’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) and is also required to be submitted to the Federal Clearinghouse 9 months after the fiscal year-end. Criteria: In accordance with HHS and federal rules and regulations, CoC 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 a delay in internally generated reports used to create the submissions for both HHS and the Federal Clearinghouse. Effect: The submissions were not submitted in an accurate and timely manner. In addition, HHS could not provide timely financial oversight. Auditor’s Recommendations: CoC 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. CoC should consider additional staff training on various reporting requirements. View of Responsible Officials: See Corrective Action Plan.

Corrective Action Plan

Block Grants for Prevention and Treatment of Substance Abuse AL No. 93.959 Forensic Services and Competency Restoration Training CSFA #60.114 Other matter required to be reported in accordance with Uniform Guidance Condition: CoC did not submit audited 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 12 months after the CoC's fiscal year end. Auditor's Recommendations: CoC 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. CoC should consider additional staff training on various reporting requirements. Action Taken: Circles of Care continues to engage in additional technical assistance by consulting with other Florida non-profit community behavioral health hospitals regarding development and completion of the 1037 form. Although additional staff resources were allocated this past year, it is apparent that more resources will be required for the timely submission of the year-end reporting and submission. CoC w ill swiftly develop a transition plan to move responsibilities relating to 1037 form and all other required schedules to the current VP of Business and Finance, Henry Lin, and CoC will prioritize staff resources necessary to complete the reporting requirements in an accurate and timely manner going forward.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.959 Block Grants for Prevention and Treatment of Substance Abuse $2.12M
93.958 Block Grants for Community Mental Health Services $1.74M
93.788 Opioid Str $813,162
93.558 Temporary Assistance for Needy Families $231,259
93.150 Projects for Assistance in Transition From Homelessness (path) $160,188