Finding 570659 (2023-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-07-08
Audit: 361679
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 implement a review process for reports to ensure accuracy and proper documentation before submission.

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 – Repeat finding (see 2022-005) 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 acknowledges this repeat finding and is taking action to improve the accuracy and oversight of financial and programmatic reporting for federally funded programs. In response, internal controls have been strengthened to ensure that all expenditure reports and quarterly programmatic reports are fully supported by underlying documentation from the accounting system and program records. A standardized grant reporting checklist has been developed and is now required to be completed for each submission. This checklist includes steps for reconciling reported expenditures with the general ledger and verifying that all programmatic metrics, such as unduplicated patient counts, are accurate and appropriately sourced. Reports are reviewed and approved by both the management of finance and program departments prior to submission. Quarterly training and periodic reviews have also been instituted for finance and program staff involved in grant reporting to reinforce proper procedures and improve coordination across departments. These corrective actions are intended to ensure accurate, compliant, and timely reporting in alignment with 45 CFR 75.342 and Uniform Guidance requirements. 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

  • 570656 2023-003
    Material Weakness Repeat
  • 570657 2023-003
    Material Weakness Repeat
  • 570658 2023-004
    Material Weakness Repeat
  • 1147098 2023-003
    Material Weakness Repeat
  • 1147099 2023-003
    Material Weakness Repeat
  • 1147100 2023-004
    Material Weakness Repeat
  • 1147101 2023-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.788 Opioid Str $2.66M
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1.40M
95.007 Research and Data Analysis $228,817
21.019 Coronavirus Relief Fund $50,000