Finding 975495 (2023-004)

U.S. Department of Health and Human Services Section 223 Demonstration Programs to Improve Community Mental Health Services, Assistance Listing #93.829 Reporting Significant Deficiency in Internal Control over Compliance Grant Award Number - 6H79SM083045‐01M004 Criteria - The OMB Compliance Supplement requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Wallowa Valley Center for Wellness must submit annual Federal Financial Report that contain costs incurred during the covered period. Certain critical information includes: *cash receipts *Cash disbursements *Total federal funds authorized *Federal share of expenditures *Total federal share Condition - Obligation information was reported inaccurately and after the required submission date. Cause - Wallowa Valley Center for Wellness did not have adequate internal controls to ensure the annual Federal Financial Report was prepared in accordance with governing requirements as payroll expenditures that occurred after the report cutoff were submitted and the report was submitted after the required submission date. Effect - Inaccurate and untimely information was reported to the federal awarding agency. Questioned Costs - None Context/Sampling - This was the sole financial report submitted during the period. As such, the reporting inaccuracy is isolated and immaterial. Repeat Finding from Prior Year - No. Recommendation - We recommend Wallowa Valley Center for Wellness enhance internal controls to ensure Federal Financial Reports are prepared in accordance with governing requirements through using actual obligations, rather than estimated, and that they are submitted by the reporting deadline. Views of Responsible Officials - Management agrees with the finding.