Finding 950931 (2023-001)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-03-08
Audit: 294179
Organization: Ablelight, Inc. (WI)

AI Summary

  • Core Issue: AbleLight did not keep enough documentation for some expenses charged to the COVID-19 Provider Relief Fund.
  • Impacted Requirements: The lack of documentation means AbleLight cannot prove compliance with program rules for certain expenditures.
  • Recommended Follow-Up: Management should improve their purchasing processes to ensure all expenses are properly documented and retained.

Finding Text

Agency: U.S. Department of Health and Human Services Federal Assistance Listing or State ID Number: 93.498, COVID-19 Provider Relief Fund and American Rescue Plan Rural Distribution Criteria: According to the Provider Relief Fund and American Rescue Plan Rural Distribution Frequently Asked Questions, AbleLight is required to maintain adequate documentation to substantiate that program funds were used for health care-related expenses attributable to coronavirus or COVID-19. Statement of Condition: AbleLight's processes and controls did not ensure sufficient supporting documentation on certain expenses charged to the federal program was obtained and retained. Questioned Costs: The amount of known questioned costs totaled $650. The projected questioned costs are $26,394. Context: Of forty (40) non-payroll expenditures applied to the program that were tested, three (3) did not have sufficient documentation. Effect: AbleLight was not able to support the compliance with program requirements for a selection of expenses charged to the program. Cause: AbleLight's controls failed to identify and correct the lack of documentation supporting the expenses charged to the program. Recommendation: We recommend management review their processes and controls regarding the purchasing process to ensure that sufficient documentation is obtained and retained to support expenditures. Management Response: Management has evaluated its internal controls and processes around invoice and credit card charge backup documentation. Through new leadership over these functions, a cleaner file structure, and a new ERP system implementation in fiscal year 2024, management is confident weaknesses will be resolved.

Categories

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 374489 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund and American Rescue Plan Rural Distribution $2.07M