Finding 526499 (2024-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2024

Accepted

2025-03-10

Audit: 345415

Organization: Resource Center Dallas (TX)

Auditor: Sutton Frost Cary LLP

AI Summary

Core Issue: There was a significant deficiency in internal controls, leading to discrepancies in service units billed for the HIV Emergency Relief Project Grant.
Impacted Requirements: The Center's procedures failed to ensure that invoiced units matched the actual services provided, resulting in an overbilling of $36,715.14.
Recommended Follow-Up: Management should enhance controls to verify that client tracking data aligns with services performed before submitting reimbursement requests.

Finding Text

Allowable costs and activities‐significant deficiency in internal controls over compliance and compliance finding. HIV Emergency Relief Project Grant ALN 93.914 Criteria: Resource Center Dallas’ (Center) internal control procedures over compliance specify that the program manager and the revenue staff accountant review any invoice prior to requesting reimbursement. Condition: During allowable activities for the HIV Emergency Relief Project Grant, for 1 out of 41 activities tested, the number of units of service provided did not match the units of service recorded in the client tracking system. Cause: Internal control was not effective at detecting data entry errors. Effect: The Center over billed the number of units of service. The total units billed for the month of September totaled 399 instead of 168 units resulting in the grant being overcharged by the Center. Questioned Costs: Known questioned costs totaling $36,715.14. Recommendation: Management should implement controls to ensure the units of service entered into the client tracking system match the units of service performed before the request for reimbursement is submitted. Management’s Response: See corrective action plan.

Corrective Action Plan

The finding was the result of a data entry oversight made by human error in the Oral Health service category for the September 2024 Ryan White billing to Dallas County. While our Dallas County Ryan White billings are currently calculated under a unit cost method, effective March 1, 2025 our contracts will be on cost reimbursement. Although we will implement the action plan to ensure our records of units are accurate, beginning March 1st there will be no financial correlation between the number of units we report to, and the amount of the reimbursement we receive from, Dallas County. New data validity review points designed to identify possible anomalies will be incorporated into the agency’s procedures with increased review by the Ryan White Program Director. The number of per‐client services received will be compared to parameters established with program managers as representing an unusual number of units received per client/patient per service date and per month. Units exceeding these parameters will be reviewed and corrected, if necessary. The review will be conducted monthly and prior to submission of Dallas County billings. The Ryan White Program Director, Del Wilson, will be in charge of implementing the corrective action plan changes. We hope to implement this plan by March 10, 2025, but before any further billings of service units to Dallas County.

Other Findings in this Audit

1102941 2024-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
93.914	Hiv Emergency Relief Project Grants	$2.93M
93.940	Hiv Prevention Activities Health Department Based	$963,630
93.917	Hiv Care Formula Grants	$147,105
10.569	Emergency Food Assistance Program (food Commodities)	$111,047
14.251	Economic Development Initiative, Community Project Funding, and Miscellaneous Grants	$75,847
10.187	The Emergency Food Assistance Program (tefap) Commodity Credit Corporation Eligible Recipient Funds	$46,901
10.182	Pandemic Relief Activities: Local Food Purchase Agreements with States, Tribes, and Local Governments	$10,318