Finding Text
Finding 2023-005 – REPORTING
Type: Material Weakness in Internal Control/Noncompliance.
Program: ALN 93.493 Congressional Directives
Criteria: Pursuant to 2 CFR 200.328(c), “The recipient or subrecipient must submit financial reports as required by the Federal award.” According to the closeout requirements of the Federal award, recipients must, “Reconcile financial expenditures to the reported total disbursement and charges in PMS.”
Condition: The CMHSP did not reconcile financial expenditures shown in the Federal Financial Report to the total disbursement and charges in PMS.
Cause: This condition was caused by an insufficient internal control process for review and approval of grant reports.
Effect: Federal share of expenditures listed on the Federal Financial Report were overstated by $361,981.
Questioned Cost: None.
Context: Amounts received as Federal reimbursement, as detailed in PMS, were supported by the books and records of the CMHSP. However, the final report of expenditures was overstated by $361,981.
Recommendation: We recommend that the CMHSP review their internal controls and make necessary changes to ensure that reports adhere to the grant requirements.
Management’s Resp: We are in agreement with this finding.