Finding 623172 (2022-002)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-01-18
Audit: 41826
Organization: Communicare, INC (KY)

AI Summary

  • Core Issue: There was underreporting of expenses on the Federal Financial Report due to incomplete financial statements that missed some general ledger entries.
  • Impacted Requirements: Accurate reporting to granting agencies is essential, especially when changing report formats; all reports must be reviewed for accuracy.
  • Recommended Follow-Up: Communicare should review and clean up the general ledger transaction listings to eliminate duplicates and ensure accurate reporting moving forward.

Finding Text

Condition: During our audit procedures over reporting requirements, we discovered that there was an overall under reporting of expenses on the Federal Financial Report. Criteria: In order to maintain accurate reporting to granting agencies, when changing format of reports used to complete filings, these reports should be reviewed for accuracy. Statement of Cause: The original reports were financial statements that did not capture all the general ledger entries. The reports that were provided during the testing were general ledger transactions as well as the original reports used in making those draws, filing reports to the agency, which is when Communicare realized the financial statements for that grant didn?t catch all the general ledger transactions. The duplicates were on some of the original general ledger transaction listings that were used to complete the draws after Communicare switched from using the grant financial statement to the general ledger transaction listing. Indication of Repeat Finding: This is a repeat finding of Finding 2021-001. Statement of Effect: Communicare could not provide report used when preparing report for filing or rerun the exact report to agree back to the Federal Financial Report that was filed. Questioned Costs: No questioned costs were identified for Section 223 Demonstration Programs to Improve Community Mental Health Services (#93.829). Perspective Information: Differences occurred because Communicare switched format of support when completing the Federal Financial Report. Communicare will keep report used when completing reports filed with federal agencies. If format of reports are switched or rerun, they will be reviewed for any duplicated information. The difference of overall expenses in the report rerun compared to the Federal Financial Report is $63,302. The audit finding represents an isolated incident. Recommendation: We recommend that Communicare review the general ledger transaction listing and remove duplicates to ensure proper reporting to granting agencies. Views of Responsible Officials: Beginning November 2022, all financial reports used in grant reporting will be checked against general ledger transactions prior to finalizing the reports to outside agencies. Reports will also be ran to check against year-to-date totals to ensure any reclassed transactions are caught prior to finalizing any reports to outside agencies.

Categories

Reporting

Other Findings in this Audit

  • 46730 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1.41M
93.958 Block Grants for Community Mental Health Services $1.05M
93.498 Provider Relief Fund $593,227
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $410,968
93.788 Opioid Str $235,896
93.997 Assisted Outpatient Treatment $200,000
93.558 Temporary Assistance for Needy Families $74,906
14.871 Section 8 Housing Choice Vouchers $56,835
93.665 Covid - Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $56,463
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $55,000
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $21,275