Finding 972868 (2022-008)

Material Weakness
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2024-05-10

AI Summary

  • Core Issue: Reimbursement requests were submitted late, with some delays up to 80 days, leading to inaccuracies in reported revenue.
  • Impacted Requirements: Timely submissions and reconciliations of reimbursements to the general ledger are essential for accurate financial reporting.
  • Recommended Follow-Up: Implement a review process for tracking grant expenditures and ensure monthly reconciliations to align financial records with actual program activity.

Finding Text

2022-008: Emergency Solutions Grant Program – AL # 14.231, Controls over cash management and reimbursement requests (Material Weakness) (Continued) Condition: Requests for reimbursement were not submitted timely, with multiple months submitted 80 days after the expenditure had incurred. Amounts recorded for revenue did not accurately reflect final requested reimbursement. Criteria: Reimbursements should be submitted timely and should be provided and reconciled to financial data in general ledger by accounting team. Differences should be resolved, and reimbursement received should ultimately reflect total program revenue in general ledger. Cause: With turnover in staff during the year, items were not always available timely. In addition, management was not always aware of reporting requirements or aware of activity under program reimbursements. Effect: Errors in reporting could ultimately lead to differences in financial accounting vs program activity. Accurate and timely reporting and requests can improve cash flows and ensure program is able to meet funding needs. Recommendation: Additionally, spreadsheets used to track grant awards and program expenditures should be reviewed by someone with an understanding of the program such as the Behavioral Health Director or another individual in the finance department. These spreadsheets should ultimately identify amounts that were submitted for request for reimbursement and be recorded in the general ledger. Amounts recorded for revenue in the general ledger should agree between the two, with monthly or quarterly reconciliations performed to ensure financial reporting accurately reflects spending and reimbursement activity. Views of Responsible Officials and Planned Corrective Action: VCSB will amend the reconciliations process for CHERP to include a documented review and approval of all expenses, reimbursement requests, and reimbursements received. Additionally, the Accounting Director and Director of Finance are working with the program fund manager to submit requests for reimbursement in a more timely manner.

Categories

Cash Management Material Weakness Reporting

Other Findings in this Audit

  • 396425 2022-007
    Material Weakness
  • 396426 2022-008
    Material Weakness
  • 972867 2022-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.231 Emergency Solutions Grant Program $1.52M
93.788 Opioid Str $708,933
93.959 Block Grants for Prevention and Treatment of Substance Abuse $708,643
93.498 Provider Relief Fund $272,008
14.267 Continuum of Care Program $225,796
93.958 Block Grants for Community Mental Health Services $163,047
84.181 Special Education-Grants for Infants and Families $71,572
93.150 Projects for Assistance in Transition From Homelessness (path) $42,363