Finding 51576 (2022-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-11-14
Audit: 49653
Organization: United Community Services, Inc. (IA)
Auditor: Bergankdv LTD

AI Summary

  • Core Issue: The Organization claimed $185,920 for funds not spent, leading to inaccurate reporting.
  • Impacted Requirements: Compliance with federal reporting criteria requires accurate claims supported by proper records.
  • Recommended Follow-Up: Implement procedures to ensure claims are only for qualified expenditures.

Finding Text

Federal Program: Assistance Listing Number 93.959 ? U.S. Department of Health and Human Services ? Iowa Department of Health and Human Services Compliance Requirement: Reporting Criteria: A properly designed system of internal controls over compliance allows entities to meet those requirements set forth by the federal government. The Organization is required to ensure that reports and claims are supported by applicable accounting or performance records and are fairly presented in accordance with governing requirements. Condition: The Organization claimed reimbursement of $185,920 for funds not spent. Subsequent to submission and payment received, the Organization identified the issue and worked with the pass-through agency to repay and correct the claim. Cause: Information submitted by the subrecipient was in a different format causing the Organization to submit a claim in the incorrect amount. Questioned Costs: The results of this noncompliance did not result in any questioned costs. Effect and Potential Effect: Inaccurate reporting that was corrected by the Organization, which could lead to loss of funding. Recommendation: Management should establish procedures to ensure claims submitted are for qualified expenditures. Responsible Official's Response: Management agrees with the finding and the recommendation.

Corrective Action Plan

Finding: 2022-001 Financial Reporting for Claim Reimbursement Our auditors identified that internal controls were not present to prevent incorrect claim submissions. Responsible Individual: Jen Pearson, Executive Director Corrective Action Plan: Management agrees with the finding, has reviewed procedures with the appropriate personnel. Date of Completion: June 30, 2023

Categories

Reporting Subrecipient Monitoring Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 628018 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.959 Block Grants for Prevention and Treatment of Substance Abuse $865,224
93.788 Opioid Str $328,645
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $260,228
93.498 Provider Relief Fund $148,434
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $92,358