Finding Text
Finding Number: 2022-003 ? Reporting Evaluation of Finding: Significant Deficiency. Federal Program: Community Services Block Grant Federal Assistance No.: 93.569 Title: CSBG-CV Federal Grantor: U.S. Department of Health and Human Services Pass-Through Entity: State of California, Health and Human Services Agency Grant number: 22F-5045 Criteria or specified requirement: The Authority did not submit monthly expenditures for open contracts on or before the 25th calendar day following the report period in accordance with current reporting requirements. (CPN-C-22-01, 1.0 CSBG Reimbursement Policies and Procedures, 1.1 Financial Reporting - EARS Invoice Due Date). Condition: In 2022 the Authority underwent a desk review by the State of California, Health and Human Services Agency who found that the Authority did not submit expenditure reports for the periods of March 1, 2022 through June 30, 2022 timely. Cause: Unknown. Effect: The untimely submission of reports prevented the State from performing testing on expenditures for the grant. Questioned Costs: None Context: This appears to be a systemic deficiency in the design of internal controls as it was all months under the grant, not just one. Recommendation: The Authority should perform an evaluation of its internal accounting and expenditure reporting practices to determine the cause for the untimely submission of monthly expenditure reports and identify efficiencies that will allow for the timely submission of future expenditure reporting.