FINDING 2022-005
Information on the federal program:
Subject: SSBG – Internal Controls
Federal Agency: Department of Health and Human Services
Federal Program: Social Services Block Grant
Assistance Listing Number: 93.667
Compliance Requirement: Cash Management
Audit Finding: Significant Deficiency
Condition: An effective internal control system was not in place to ensure compliance with requirements related to the grant agreement and the Cash Management compliance requirements.
Context: We noted that for three claims in a sample of three, there was no formal review/approval of the FSSA Contract Claim Reimbursement form outside of who is preparing the form. The CFO prepared and submitted the claims without a secondary review.
Views of Responsible Officials: We concur with the finding.
Description of Corrective Action Plan: CICOA created an additional position in our Fiscal department to help add capacity and address various segregation of duties concerns. On April 3, 2023, CICOA hired a Senior Director of Financial Reporting to fill this new position. The CFO has done/will continue various training with the Senior Director and other staff to transfer knowledge and responsibilities currently held by the CFO, including future preparation and submission of the FSSA Contract Claim Reimbursement documents. The CFO will serve as either the primary or secondary reviewer of such Claim Reimbursements after preparation by other Fiscal staff.
Key item to note: this finding was made as part of the audit for the fiscal year ended June 30, 2022, and the hiring of the Senior Director was not made until late in the fiscal year ended June 30, 2023/early fiscal year 2024. Due to this timing, necessary changes did not exist until fiscal year 2024.
Responsible Party and Timeline for Completion: To be completed by CFO (with assistance from Senior Director of Financial Reporting and other Fiscal staff), beginning no later than Claims Reimbursements submitted for services provided starting in fiscal year 2024.