Finding 479065 (2023-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-07-22
Audit: 315590
Organization: Provident, Inc. (MO)

AI Summary

  • Core Issue: One financial report had deviations from reporting requirements, indicating a lack of proper controls.
  • Impacted Requirements: Financial reporting standards were not fully met, leading to potential clerical inaccuracies.
  • Recommended Follow-Up: Evaluate and strengthen controls for monitoring financial reports before submission to ensure accuracy.

Finding Text

Information on the Federal Program: Substance Abuse and Mental Health Services Projects of Regional and National Significance 93.243, U.S. Department of Health and Human Services, S23-SM84816-043, 2023, Passed through Substance Abuse and Mental Health Services Administration Criteria or Specific Requirement: Financial Reporting Questioned Costs: None Context: Out of a population of 15 financial reports, a sample of 2 reports were selected for testing. One of the financial reports had deviations from the reporting requirements. Our sample was not and was not intended to be statistically valid. Effect: The Organization was unable to detect when clerical inaccuracies are being included within the submitted financial report. Cause: The Organization did not have proper controls in place around reviewing required reports prior to submission. Identification as a Repeat Finding, if Applicable: Not Applicable Recommendation: We recommend the Organization evaluate controls around monitoring reporting to determine proper information is being included in the reports. Views of Responsible Officials and Planned Corrective Actions: Management concurs with the finding and recommendation. See further information on the corrective action plan provided by management.

Corrective Action Plan

For the April 2023 financial report, an error was found with the amount of indirect costs reported. There was a transposition error in the submitted amount. In addition, the salaries and fringe benefits were not split out between FTE and PTE as all were included on the FTE lines in the submitted report. Corrective Action Plan: As 2023 was the initial year of Provident, Inc. being considered a subrecipient under this grant, rather than a subcontractor as in prior years, the April 2023 reporting cycle was the initial reporting cycle completed by the Organization. As such, there was an experience curve for the initial reporting cycle. After the initial month of reporting, management had correspondence with Vibrant relating to changes going forward. In order to prevent clerical issues in future reports, management will implement additional reviews of the reports and supporting documentation prior to submission. This review will consist of review for clerical issues, comparison to supporting schedules, and comparison to report compliance requirements. Personnel Responsible for Corrective Action: Jamie Ilko, Senior Director, Finance & Administration; jilko@providentstl.org; 314-802-2607 Anticipated Completion Date: Change is in process and full adoption is anticipated by December 31, 2024.

Categories

Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 1055507 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.218 Community Development Block Grants/entitlement Grants $100,000
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $18,063