Finding 502579 (2023-002)

Significant Deficiency
Requirement
ABC
Questioned Costs
-
Year
2023
Accepted
2024-10-12
Audit: 324580
Organization: Okanogan Behavioral Healthcare (WA)

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance, specifically in cash management and indirect costs.
  • Impacted Requirements: Grant draw requests must be reviewed and approved by the CFO or CEO before submission to ensure accuracy.
  • Recommended Follow-Up: Implement a process for detailed review and approval of all grant draw requests by someone other than the preparer.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Substance Abuse Prevention and Treatment Block Grant (SABG); SOR Recovery Support Services Assistance Listing Number: 93.959 and 93.788 Federal Award Identification Number and Year: K6103.01 – 2023, 1009592.16 – 2023, K4849-02 – 2022, K6479 - 2023 Pass-Through Agency: Washington State Health Care Authority; Beacon Health Options, Inc. Pass-Through Number(s): K6103.01, 1009592.16, K4849-02, K6479 Award Period: July 1, 2022 – June 30, 2023; September 30, 2020 – September 29, 2022; September 29, 2022 – September 28, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Proper internal controls over cash management and indirect costs include the review and approval of grant draws prior to submission to the granting agency, to ensure accuracy of expenditures. Condition: Grant billings are to be reviewed and approved by the CFO or CEO prior to submitting to the granting agency. There was no documentation of review and approval by the CFO or CEO. Questioned costs: None. Context: There was no prior review and approval indicated on any of the cash management drawdowns reviewed as part of audit testing. Cause: Inadequate implementation of internal controls over compliance related to cash management and indirect costs. There was also turnover in the CFO position during the fiscal year. Effect: Lack of an independent review and approval of grant billings resulted in incorrect items being included on the billings and errors going undetected. Repeat finding: Not a repeat finding. Recommendation: CLA recommends that all grant draw requests are reviewed in detail with support for the expenditures and approved by an individual separate from the one preparing the draw request prior to submission to the granting agency. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Cash Management Significant Deficiency

Other Findings in this Audit

  • 502571 2023-001
    Significant Deficiency Repeat
  • 502572 2023-002
    Significant Deficiency
  • 502573 2023-003
    Significant Deficiency
  • 502574 2023-004
    Significant Deficiency
  • 502575 2023-005
    Significant Deficiency
  • 502576 2023-006
    Material Weakness
  • 502577 2023-007
    Significant Deficiency
  • 502578 2023-008
    Material Weakness
  • 502580 2023-005
    Significant Deficiency
  • 502581 2023-007
    Significant Deficiency
  • 502582 2023-002
    Significant Deficiency
  • 502583 2023-006
    Material Weakness
  • 502584 2023-002
    Significant Deficiency
  • 502585 2023-007
    Significant Deficiency
  • 502586 2023-008
    Material Weakness
  • 1079013 2023-001
    Significant Deficiency Repeat
  • 1079014 2023-002
    Significant Deficiency
  • 1079015 2023-003
    Significant Deficiency
  • 1079016 2023-004
    Significant Deficiency
  • 1079017 2023-005
    Significant Deficiency
  • 1079018 2023-006
    Material Weakness
  • 1079019 2023-007
    Significant Deficiency
  • 1079020 2023-008
    Material Weakness
  • 1079021 2023-002
    Significant Deficiency
  • 1079022 2023-005
    Significant Deficiency
  • 1079023 2023-007
    Significant Deficiency
  • 1079024 2023-002
    Significant Deficiency
  • 1079025 2023-006
    Material Weakness
  • 1079026 2023-002
    Significant Deficiency
  • 1079027 2023-007
    Significant Deficiency
  • 1079028 2023-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.788 Opioid Str $407,550
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $130,992
14.267 Continuum of Care Program $75,071
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $60,429
93.958 Block Grants for Community Mental Health Services $42,000
93.959 Block Grants for Prevention and Treatment of Substance Abuse $36,000