Finding Text
Information on Federal Programs: U.S. Department of Health and Human Services, Block Grant for Prevention and Treatment of Substance Abuse (Assistance Listing #93.959); Block Grant for Community Mental Health Services (Assistance Listing #93.958); Crisis Counseling (Assistance Listing #97.032)
State of Florida Department of Children and Families, Forensic Services and Competency Restoration Training (Catalog of State Financial Assistance #60.114)
Finding Type: Significant Deficiency
Criteria: The 2 CFR section 200.302 requires that non-federal entities receiving federal awards present accurate, current, and complete disclosure of the financial results of each Federal award or program. The entity is required to maintain records, supported by source documentation, that identify adequately the source of funds for federally funded programs.
Condition and Context: The Organization’s draft Schedule of Expenditures of Federal Awards and Schedule of Expenditures of State Financial Assistance (the “Schedules”) did not accurately reconcile to the Post Award Notice issued by the State of Florida, impacting certain programs and resulting in reclassifications to the Schedules.
Cause: The Organization’s existing internal controls in place over the year-end reconciliation process did not identify reclassifications necessary in the Schedules.
Effect: The final Post Award Notice resulted in reclassifications to the Schedules, however this did not create any differences in total awards.
Questioned Costs: None
Recommendation: The Organization should implement a process and related internal controls surrounding the year-end reconciliation of the Schedules to ensure the Schedules reconcile to the final reports.
Views of Responsible Officials: Due to extenuating circumstances, including the late issuance of the Post Award Notice from the managing entity, the Schedule was not fully reconciled which resulted in reclassifications to the final Schedules. The total amount of funding received was correct, however, there were reclassifications necessary between certain programs within the Schedules.
Planned Implementation Corrective Action: Additional preventive internal control procedures will be implemented, including an additional level of review of the Schedules and reconciliation. These procedures and internal controls have been implemented as of the date of this report.
Person Responsible for Corrective Action: Chief Financial Officer