Finding Text
2023-003 Cash Management
Program: Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care)
Federal Assistance Listing No: 93.224
County Recipient: Community Action Partnership of Natrona County
Federal Agency: Department of Health and Human Services
Grant year: 2022
Federal Award Identification: Unknown
Applicable Pass-through Entity: None
Criteria
When non-federal entities are funded under the reimbursement method, expenditures included in reimbursement requests should have supporting documentation and the entity should have paid for the costs for which the reimbursement is requested prior to the date of the reimbursement request.
Condition
Community Action Partnership of Natrona County (CAP) submitted reimbursement requests in excess of actual expenditures.
Cause
Due to turnover in grant management, processes that had previously existed were overlooked. A reconciliation of grant expenditures to the amounts requested for reimbursement was not performed resulting in reimbursements that were greater than the actual grant expenditures.
Effect or potential effect
Without adequate review and reconciliations of reimbursement requests, an entity may submit inaccurate expenditure reimbursement requests.
Questioned Cost
None
Context
We tested 24 out of 26 reimbursement requests submitted during the grant period by comparing each reimbursement request to the actual expenditures in the CAP general ledger. Additionally, we reconciled total grant reimbursements to total grant expenditures. We noted that total grant reimbursement requests exceeded the total grant expenditures by $9,473.
Identification as a repeat finding
This is not a repeat finding
Recommendation
We recommend CAP review its policies and procedures related to the internal controls over reimbursement requests to assure reimbursement requests have supporting documentation and reconcile to actual expenditures incurred.
Views of Responsible Officials
CAPNC moved from an archaic, unsupported software system to Sage Intaact. This software provides the ability to modernize and deploy the levels of internal controls missing from previous fiscal personnel oversight and technical capability. Current staff have trained under Sage Intaact and Wipfli consultants to properly track A/P, A/R, payroll and grant management to ensure the integrity of data entry and compliance is observed. Board membership have access to accounting software through Board portal for further oversight.
Payroll services were outsourced to ADP payroll services in order to provide real time features and accountability for time. This allows recording of time more accurate, reliable and allocable. Payroll records are reviewed and time studies are being performed for all staff to ensure allocation methodology, once selected is appropriate, consistent and in alignment with staff performance.
Wipfli Consulting is providing technical assistance over a 10 month period to develop/deploy updated policies and procedures for fiscal area, in accordance with Uniform Guidance. Curriculum includes:
All administrative leadership staff received, and will continue to receive annually, fiscal oversight training including but not limited to, Uniform Guidance training, grants management and compliance training. Allocations are reviewed regularly by leadership team to ensure that we have appropriate methodology and that we are consistent with grant expectations and regulations.
See Corrective Action Plan