Finding 570654 (2022-005)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2025-07-08
Audit: 361677
Organization: Tuerk House, Inc. (MD)

AI Summary

  • Core Issue: The Organization's annual expenditure reporting did not match the actual grant expenditures, leading to inaccuracies in quarterly programmatic reports.
  • Impacted Requirements: Compliance with reporting standards under 45 CFR 75.342 was not met due to lack of internal controls.
  • Recommended Follow-Up: Management should verify the accuracy of reports before submission to ensure all figures are supported by proper documentation.

Finding Text

Opioid STR ALN No. 93.788 U.S. Department of Health and Human Services Criteria or Specific Requirement – Reporting (45 CFR 75.342) Condition – The Organization’s annual expenditure reporting did not agree to the underlying grant expenditure support. In addition, the Organization did not properly report certain information in its quarterly programmatic reports. Cause – The Organization did not have necessary internal controls to properly identify and report eligible grant expenditures. In addition, the Organization did not have controls in place to support amounts reported in quarterly programmatic reporting requirements. Effect or potential effect– The Organization incorrectly reported grant expenditures and programmatic statistics, such as total unique patients. Questioned Costs – None Context – A sample of one financial report was tested out of the total population of 2 financial reports. In addition, a sample of one special report was tested out of the total population of 4 special reports. The sampling methodology used is not and is not intended to be statistically valid. Certain amounts on the financial and special reports were not accurately reported. Identification as a repeat finding, if applicable – Not a repeat finding Recommendation – Management should review the required reports for accuracy prior to submission to ensure the documentation supports the amounts in the report.

Corrective Action Plan

The Organization agrees with the finding and recognizes the importance of accurate financial and programmatic reporting in compliance with federal grant requirements. To address this issue, the Organization is strengthening its internal controls surrounding the preparation and review of all financial and programmatic reports submitted to granting agencies. Specifically, the finance department and program staff will implement a joint review process to reconcile reported expenditures and program statistics --such as patient counts --against underlying financial and operational records prior to submission. A standardized reporting checklist will be developed to ensure that all data points are verified for accuracy and that supporting documentation is retained and reviewed. In addition, staff responsible for grant reporting will receive training on federal reporting requirements, including those outlined in 45 CFR 75.342, to ensure consistency and compliance across all submissions. These steps will help ensure that all future reports accurately reflect grant expenditures and program outcomes, minimizing the risk of misreporting and ensuring transparency and accountability. Organization Contact Person Responsible for Corrective Action: Joseph Koehler, Director of Finance Anticipated Completion Date: June 30, 2025

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 570651 2022-003
    Material Weakness
  • 570652 2022-003
    Material Weakness
  • 570653 2022-004
    Material Weakness
  • 570655 2022-006
    Material Weakness
  • 1147093 2022-003
    Material Weakness
  • 1147094 2022-003
    Material Weakness
  • 1147095 2022-004
    Material Weakness
  • 1147096 2022-005
    Material Weakness
  • 1147097 2022-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.788 Opioid Str $2.29M
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1.24M
95.007 Research and Data Analysis $278,945
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $261,607