Savio House

Finding 2023-001 Invoice Submission Information on the Federal Program: Assistance Listing Number 93.958—U.S Department of Health and Human Services, Block Grants for Community Mental Health Services. Compliance Requirements: Allowable Cost and Activities Type of Finding: Significant Deficiency. Criteria: 2 CFR 200.303 requires all non-federal entities to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Monthly invoices are coded for reimbursement and reviewed by the Controller, however there is not a separate review to ensure costs are supported, allowable and that the monthly indirect cost rate calculation is accurate. Cause: Savio House doesn’t have policies that require secondary invoice review prior to submission. Effect or Potential Effect: Material non-compliance, including submitting expenditures that lack support, or errors in calculating the indirect cost rate each month. Questioned Costs: None. Context: We did not see secondary review on any of the 12 monthly invoices submitted during 2023. Recommendation: We recommend that Savio House adopt a policy to allow for a secondary review of invoices prior to submission for reimbursement. Views of Responsible Official: Management agrees with the finding. See Corrective Action Plan for additional details.