Finding Text
Finding: 2022-001 Preparation of the Schedule of Expenditures of Federal Awards Criteria: Per CFR 75.303 The non-federal entity must "Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award." Condition: For the fiscal year ended June 30, 2022, internal control procedures were not followed by program personnel. Cause: The Organization's established internal control procedures were not followed as required on review and approval of 2 invoices. Effect: Internal control procedures were not followed on invoices that could have caused an unallowable expenses or activities for the federal program. There were no unallowed costs noted. Questioned Costs: None Context: This is not a systemic problem. Repeat Finding: This is not a repeat finding. Corrective Action Plan: Northern Kentucky Mental Health - Mental Retardation Regional Board, Inc. agrees with the finding and will complete necessary training with program employees regarding organizations established and required procedures along with the necessity of these procedures and the additional importance due to federal program requirements. Anticipated Completion Date: Fiscal year end June 30, 2023. Criteria: Per CFR 75.303 The non-federal entity must "Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award." Condition: For the fiscal year ended June 30, 2022, internal control procedures were not followed by program personnel. Cause: The Organization's established internal control procedures were not followed as required on review and approval of 2 invoices. Effect: Internal control procedures were not followed on invoices that could have caused an unallowable expenses or activities for the federal program. There were no unallowed costs noted. Questioned Costs: None Context: This is not a systemic problem. Repeat Finding: This is not a repeat finding. Corrective Action Plan: Northern Kentucky Mental Health - Mental Retardation Regional Board, Inc. agrees with the finding and will complete necessary training with program employees regarding organizations established and required procedures along with the necessity of these procedures and the additional importance due to federal program requirements. Anticipated Completion Date: Fiscal year end June 30, 2023.