Finding Text
2022-002 Grant Voucher Submissions Criteria: The majority of the Facility?s revenue are contracts and grants from government agencies. Revenue is recognized when the Facility incurs expenses related to the contract. Generally, the funds are not remitted until a voucher for the services provided or expenses incurred has been submitted for reimbursement. Condition: During the year under audit, the majority of voucher submissions for 2022 were not prepared on a timely basis and were submitted in 2023. Grant voucher submissions were not completed in a timely manner for the two programs, Community Development Block Grant (Assistance Listing Number 14.218) and the Prevention and Treatment of Substance Abuse (Assistance Listing Number 93.959). This finding is a significant deficiency for the 2022 audit. All of the vouchers were prepared and submitted by the conclusion of the audit. Cause: There have been staffing changes within the Facility's finance department during 2022 which resulted in delays with preparing vouchers and therefore, submitting vouchers for reimbursement. Effect: Late voucher preparation and submission may result in the denial of vouchers by granting agencies and the loss of revenue for services that were delivered by the Facility. Late submission directly impacts cash flows as in most cases, the Facility has already made the cash payments for the program expenses. Recommendation: The Facility should prepare and submit vouchers on a timely basis in accordance with the various grants terms and conditions. Views of Responsible Official and Planned Corrective Action: The Chief Executive Officer and Chief Financial Officer will ensure that all vouchers are prepared, reviewed and submitted on a timely basis.