Recurring Findings

Alcohol and Drug: Recurring Less severe Noncompliance
Federal Program Issue First Year Reported
Department's Assertion Page Number
Block Grants for Prevention and Treatment of Substance Abuse ADP does not ensure that subgrantees expend Block Grants for Prevention and Treatment of Substance Abuse (SAPT) funds only for allowable activities. ADP‘s staff do not review the subgrantees‘ financial records during its on-site audits and desk audits to determine whether they spent SAPT funds on only allowable activities and costs. ADP's county monitoring unit (CMU) did not follow written policies and procedures requiring supervisory review and approval of all desk and site review reports completed by its staff. We also found that CMU did not formally track the resolution of all corrective actions identified in its site and desk reviews of subrecipients. In addition, during our review of ADP's monitoring of subrecipients related to OMB Circular A-133 audits, we found that it did not issue one of five management decisions within six months as required. Finally, during our review of subrecipient monitoring activities, we found that ADP's audit services branch did not complete and issue a final report for the one county it selected as part of its annual audit plan for fiscal year 2009-10. 2007-08
ADP agrees with all findings. 1) The CMU temporarily modified the report review process in March 2010 in order to manage the workload due to staff shortages, and communicated the modified process to staff verbally. In the future, any temporary modifications will be appropriately documented. 2) ADP has taken several measures to ensure that CMU's staff track and maintain documentation to demonstrate that its subrecipients promptly address corrective actions identified during desk and site reviews completed by CMU. 3) ADP began the follow-up process within the six-month time frame and has continued to work closely with Alameda County. 4) ADP will establish and maintain policies and procedures by July 1, 2011, for issuing final reports promptly so subrecipients can take corrective action and avoid continuing noncompliance. ADP will also dedicate audit staff to reviewing quarterly federal financial management reports and the underlying documentation as part of its annual audit plan beginning with fiscal year 2011-12. 67
Block Grants for Prevention and Treatment of Substance Abuse ADP does not ensure that subgrantees expend Block Grants for Prevention and Treatment of Substance Abuse (SAPT) funds only for allowable activities. ADP‘s staff do not review the subgrantees‘ financial records during its on-site audits and desk audits to determine whether they spent SAPT funds on only allowable activities and costs. ADP's county monitoring unit (CMU) did not follow written policies and procedures requiring supervisory review and approval of all desk and site review reports completed by its staff. We also found that CMU did not formally track the resolution of all corrective actions identified in its site and desk reviews of subrecipients. In addition, during our review of ADP's monitoring of subrecipients related to OMB Circular A-133 audits, we found that it did not issue one of five management decisions within six months as required. Finally, during our review of subrecipient monitoring activities, we found that ADP's audit services branch did not complete and issue a final report for the one county it selected as part of its annual audit plan for fiscal year 2009-10. 2007-08
ADP agrees with all findings. 1) The CMU temporarily modified the report review process in March 2010 in order to manage the workload due to staff shortages, and communicated the modified process to staff verbally. In the future, any temporary modifications will be appropriately documented. 2) ADP has taken several measures to ensure that CMU's staff track and maintain documentation to demonstrate that its subrecipients promptly address corrective actions identified during desk and site reviews completed by CMU. 3) ADP began the follow-up process within the six-month time frame and has continued to work closely with Alameda County. 4) ADP will establish and maintain policies and procedures by July 1, 2011, for issuing final reports promptly so subrecipients can take corrective action and avoid continuing noncompliance. ADP will also dedicate audit staff to reviewing quarterly federal financial management reports and the underlying documentation as part of its annual audit plan beginning with fiscal year 2011-12. 67
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