Finding Text
Condition: During our testing of compliance billing of units of parenting skills classes to Stark County Department of Job and Family Services, we noted out of a sample to 40 participant billings, the number of units billed for 3 of the 40 were subtotaled incorrectly. We consider this instance to be a significant deficiency over compliance relating to allowable and unallowable activities.
Criteria: Internal controls should be in place to ensure amounts billed to federal agencies are accurate and supported by documentation of a participant’s attendance.
Cause: Internal control procedures are not designed effectively to detect and correct errors in billing units of the parenting skills program prior to submission to the grantor.
Effect: As a result of the deficiency noted above, audit procedures identified certain over‐billings to the grantor.
Context: A sample of 40 billing units totaling $41,221 was selected for testing from a population of total units billed of $231,685. The test found errors in 3 billings totaling $477. Statistical sampling was not used in making sample selections.
Recommendation: We recommend management review current internal controls and ensure they are designed effectively over billing of parenting skills units, including review by an employee knowledgeable of compliance requirements.