Finding 957633 (2023-004)

U.S. Department of Health and Human Services Federal Financial Assistance Listing Number 93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services ‐ 6H79SM083306‐01M002 Cash Management and Reporting Significant Deficiency in Internal Control over Compliance Criteria: The OMB Compliance Supplement requires that non‐federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Condition: During our testing of reimbursement requests and reporting, there was no documentation available for the review and approval procedures performed. Cause: The Organization did not have an adequate internal control policy to require the documentation of the reimbursement requests’ and reports review and approval. Effect: Inaccurate reimbursement requests or reports may be prepared, which could lead to amounts received or reported in error. Questioned Costs: None. Context/Sampling: There was a total of two reimbursement requests and one report prepared for the year ended June 30, 2023 all of which were selected for testing. None of the reimbursement requests or reports contained documentation of the request being reviewed or approved. Repeat Finding from Prior Year(s): Yes for cash management, but no for reporting. Recommendation: We recommend the Organization enhance internal control policies to require documentation of the review and approval procedures performed in the preparation and review of reimbursement requests and reports. Views of Responsible Individuals: Management agrees with the finding.