Finding Text
FEDERAL AWARDS - CADENCE IS RESPONSIBLE FOR THE MONITORING AND TRACKING OF FUNDING SOURCES. SPECIFICALLY TO IDENTIFY FEDERALLY SOURCED AWARDS TO DETERMINE COMPLIANCE WITH OMB'S UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS. STATEMENT OF CRITERIA: AN ENTITY THAT EXCEEDS $750,000 OR MORE IN FEDERAL AWARDS DURING THE FISCAL YEAR IS REQUIRED TO OBTAIN A SINGLE AUDIT. STATEMENT OF CONDITION: FEDERAL AWARDS WERE NOT BEING PROPERLY MONITORED, TRACKED AND IDENTIFIED AS FEDERALLY SOURCED BY THE ORGANIZATION. STATEMENT OF CAUSE: MANAGEMENT WAS OPERATING UNDER THE ERRONEOUS ASSUMPTION THAT THE PROGRAM THAT TOOK IT OVER THE SINGLE AUDIT THRESHOLD (BRIDGES) WAS HANDLED THE SAME WAY AS OTHER PROGRAMS FUNDED VIA THE SAME REVENUE STREAM (FOSTER CARE) AS THEY BOTH RECEIVED TITLE IV-E DOLLARS. AS FUNDS ARE DISTRIBUTED THROUGH ODJFS, THE MANAGEMENT TEAM OPERATED AS IF THAT REVENUE WAS TREATED THE SAME WAY AS FOSTER CARE. ONCE WE HAD SOME FURTHER DISCUSSIONS WITH THE AUDIT TEAM, WE RECOGNIZED THE ERROR. STATEMENT OF EFFECT: BECAUSE OF THESE INSTANCES NOTED ABOVE, THE ORGANIZATION WAS NOT AWARE THEY EXCEEDED THE $750,000 SINGLE AUDIT THRESHOLD AND WERE REQUIRED TO HAVE A SINGLE AUDIT PERFORMED. RECOMMENDATION: MANAGEMENT SHOULD FORMALIZE A SYSTEM OF PROCEDURES AND CONTROLS TO ENSURE THE ORGANIZATION IS PROPERLY TRACKING FEDERAL AWARDS AND COMPLYING WITH ANY APPLICABLE REPORTING REQUIREMENTS AS IT RELATES TO FEDERAL AWARDS RECEIVED. MANAGEMENT RESPONSE: MANAGEMENT AT CADENCE CARE NETWORK HAS APPOINTED A NEW CHIEF FINANCIAL OFFICER (CFO) WITH EXTENSIVE KNOWLEDGE AND EXPERIENCE WITH THE SINGLE AUDIT TO REPLACE THE PREVIOUS CFO. WE HAVE FULL CONFIDENCE IN HIS EXPERTISE AND PRIOR NOT-FOR-PROFIT EXPERIENCE TO EFFECTIVELY ESTABLISH AND EXECUTE THE ESSENTIAL PROCESSES AND PROTOCOLS NEEDED FOR ENHANCED TRACKING, REPORTING, AND DOCUMENTATION OF FEDERAL GRANTS. PROCESSES THAT ARE BEING IMPLEMENTED WOULD INCLUDE A GRANT CONTRACT TRACKER TO INDICATE THE START AND END DATE OF FEDERAL FUNDING CONTRACTS, A MONTHLY ROLL FORWARD TIE OUT TO TRACK REVENUE, RECEIVABLES, AND EXPENSES, AND THE USE AND IMPLEMENTATION OF CUSTOM FIELDS IN THE BLACKBAUD ACCOUNTING SOFTWARE TO ISOLATE AND IMPROVE TRACKING FEDERAL FUNDS.