Finding 496821 (2023-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-09-13

AI Summary

  • Core Issue: The 4th quarter status report was submitted 77 days late, violating the grant agreement's deadline.
  • Impacted Requirements: Timely reporting is crucial to maintain compliance with the grant agreement and avoid potential funding issues.
  • Recommended Follow-Up: Implement a review process to ensure all reports are submitted on time and communicate deadlines to relevant personnel.

Finding Text

Finding 2023-003 Significant Deficiency – L. Reporting Federal Agency: U.S. Department of the Treasury Passthrough Entity: Missouri Behavioral Health Council Assistance Listing Number and Federal Program: 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: Per the grant agreement from the Missouri Behavioral Health Council, the Association is required to submit quarterly status reports on the progress of the Kirksville, Missouri, building construction. According to the grant agreement, the Association is required to submit these quarterly reports within ten days following the end of each quarter. Statement of Condition: While reviewing the quarterly status reports and the supporting documentation, it was discovered that the 4th quarter fiscal year 2023 quarterly status report, which is required to be submitted on July 10, 2023, was submitted on September 25, 2023, or 77 days late. Statement of Cause: It appears that there was a lack of review for ensuring that all quarterly reports were completed in a timely manner. Therefore, the required personnel were not notified that the report was due, or after the deadline, that the report was not submitted and needed to be filled out and submitted. Statement of Effect: Noncompliance with the reporting requirements described within the grant agreement could result in the Association being barred from receiving grant funding from the pass-through entity and/or the awarding agency for future grants. In addition to this, the Association could be required to refund all federal funds received by the pass-through agency. Questioned Costs: No questioned costs were identified. Identification of Repeat Findings: N/A Recommendations: We recommend a review process is put into place to ensure all required reporting is completed and submitted in a timely manner in accordance with the requirements in the grant agreement. These reviews should be communicated to the personnel involved in the grant reporting, so they are aware of the deadlines for the reports. Views of Responsible Official(s): The billing and project update process was never strictly enforced by the grantor. Some of this was due to supply issues and contractor availability during Covid. The process was set up to be turned in quarterly, but the grantor was fairly informal with that due to the fact that all parties participated in monthly meetings and each agency was dealing with their own timeframes regarding remodel and building projects. During the project, there was also a staffing change at the grantor, which resulted in some delayed progress and billing updates/reports, as the grantor assigned another staff member to manage the projects. As you can see, funds were reimbursed to the Association throughout the process and were never withheld. See corrective action plan.

Corrective Action Plan

September 9, 2024 Re: MTBH 2023 Single Audit To Whom it May Concern: In response to our recent MTBH 2023 Single Audit findings related to reimbursement request "KV-4", MTBH will implement a review process for future grant reimbursement requests, effective immediately. I, Jenny Haught, will complete and send the reimbursement requests to Michael Cantrell, President and CEO for review. Upon his review and approval, I will send the reimbursement requests to the appropriate person per the grant agreement for official reimbursement. In response to our recent MTBH 2023 Single Audit findings related to quarterly progress reports, MTBH will implement a review process for future grant reporting, adhering to the grant agreement, effective immediately. Sincerely, Jenny Haught, Vice President of Finance

Categories

Subrecipient Monitoring Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 496819 2023-001
    Material Weakness Repeat
  • 496820 2023-002
    Material Weakness
  • 1073261 2023-001
    Material Weakness Repeat
  • 1073262 2023-002
    Material Weakness
  • 1073263 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.23M
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $1.54M