Observations
Based on a review of administrative documentation, the project failed to document an independent annual audit of financial activities associated with the project's drug/alcohol abuse services.
The findings include:
The facility's administrative documentation and financial records were reviewed on September 6, 2013.
The facility has an exception to the Department of Drug and Alcohol Program's General Standards for Free-Standing Treatment Activities, Chapter 709.25 (a), relative to an independent annual audit of financial activities associated with the project's drug/alcohol abuse services. However, the exception states: " In lieu of the annual audit, a certified public accountant will review the bank statements and complete the corporation's tax return. In addition, all financial reports including bank statements, payroll and staffing records and annual tax returns will be available for Division review during on-site licensing inspections."
The facility failed to provide documentation that a certified public accountant completed the corporation's tax return. The facility provided a note from the CPA which read "I volunteered to review and complete the 2012 Form 990-N on behalf of the Empowerment Resurrection Center. According to "Annual Electronic Filing Requirement for Small Exempt Organizations" on the IRS website, small tax-exempt organizations with gross receipts that are normally $50,000 or less are required to file the form via the e-Postcard. After reviewing the 2012 receipt history of the organization's bank account, I concluded that the organization met this requirement and filed 2012 Form 990-N (e-Postcard)."
However, the e-Postcard is not a tax return and does not meet the requirement.
The Project Director did not dispute the findings.
This is a repeat citation. The facility was previously cited for non-compliance on 3/8/13.
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Plan of Correction
A Certified Public Accountant filed the organization's taxes electronically in April of 2013. The program director will request a copy of the 2012 tax return from the public accountant that commpleted the 2012 tax return. If ERC is unsuccessful retriving 2012 tax return from public account. The program director will request a copy from the IRS and will submit upon receipt to DDAP. The program director will secure a hard copy of tax returns each year and maintain in office for comfirmation of filing. |