UNITED CEREBRAL PALSY OF HUNTSVILLE & TE

Program: U.S. Department of Health and Human Services; Passed through Alabama Department of Human Resources; Childcare Enhancement with a Purpose (CCEP), CFDA #93.596, for 10/1/19-9/30/20. Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal Awards establish and maintain internal control designed to reasonably ensure compliance with Federal Statutes, regulations, and the terms and conditions of the Federal award. Condition: In March 2020, United Cerebral Palsy of Huntsville and Tennessee Valley, Inc. transitioned its employees to working at home. Due to this transition, there was an emergency change to the CCEP programs purchasing procedures. This change led to a temporary failure of some of the controls over purchasing. We do not believe this failure resulted in any fraudulent purchases. This temporary failure lasted until the end of April 2020, at which point employees were able to return to the office and resume normal purchasing procedures. Context: This is a condition identified per review of the organization?s compliance with specified requirements using a statistically valid sample. Effect: Without adequate controls in place to ensure purchases are properly reviewed, the reimbursements requested for the program could be for fraudulent expenses. Cause: An unexpected pandemic that forced employees to stay at home. Repeat of a Prior-Year Finding: No Recommendation: The pre-pandemic controls should be implemented with necessary changes being made for employment situations that have changed due to the pandemic. Also, plans should be made for the possibility of further working at home situations. View of Responsible Officials: Management agrees with this finding.