ST. FRANCIS CENTER AND SUBSIDIARIESNon-Profit

Department of Housing and Urban Development Federal Financial Assistance Listing/ALN 93.958 Block Grants for Community Mental Health Services All Awards Matching Material Weakness in Internal Control over Compliance and Scope Limitation Relating to Compliance Criteria - 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. This includes proper review and approval of qualifying expenses for matching requirements. Condition - The Organization did not have adequate internal controls to ensure matching expenses were appropriately tracked to meet award requirements. In addition, it was identified that all expenses did not have adequate documentation supporting the review and approval of the amounts meeting the matching requirements. Additionally, select payroll allocations did not have supporting documentation for the amounts allocated to the program. Cause - The matching requirements were not monitored to ensure compliance with the overall grant requirements. Effect - The Organization’s internal controls failed to properly monitor the matching expenses incurred to ensure compliance with the program. Without adequate support, demonstrating the required match was made is difficult. Questioned Costs – Due to lack of supporting documentation for certain payroll allocations, a complete determination was unable to be made relating to the required match requirements. Context/Sampling - A nonstatistical sample of 45 costs were selected for matching testing. 19 out of the 45 costs tested lacked proper supporting documentation of review and approval. In addition, 15 out of the 45 costs, or $76,800 of $136,981 of the tested items lacked proper supporting documentation for the allocation of expenses. Repeat Finding from Prior Year(s) - No. Recommendation - Management should implement internal controls to ensure proper documentation of the allocation of costs and review and approval of expenses qualifying for matching requirements. In addition, management should implement internal controls for tracking and monitoring of matching requirements. Views of Responsible Officials – Management agrees with the finding.

Department of Housing and Urban Development Federal Financial Assistance Listing/ALN 93.958 Block Grants for Community Mental Health Services All Awards Activities Allowed or Unallowed; Allowable Costs and Cost Principles; and Cash Management Significant Deficiency in Internal Control over Compliance Criteria - 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition - The Organization did not have adequate internal controls to ensure costs requested for reimbursement were eligible under program requirements. Time incurred on a different program was included in error when summarizing payroll costs. Cause – Due to oversight by management, payroll expenses that were not allowable were reimbursed by the award. Effect - The Organization’s internal controls failed to properly identify expenses for reimbursement. Questioned Costs - None Reported. Context/Sampling - A nonstatistical sample of 5 reimbursements out of 9 total reimbursements were selected for expense testing. 1 out of the 5 reimbursements included unallowed expenses. These transactions totaled $2,969 of $102,247 costs tested. Repeat Finding from Prior Year(s) - No. Recommendation - Management should implement internal controls to ensure all costs requested for reimbursement are qualifying expenses. Views of Responsible Officials – Management agrees with the finding.