Audit 290570

2023 – 002- Lack of Review Federal Agency: Department of Health and Human Services Program Title: Substance Abuse Prevention and Treatment Black Grant (SABG) Assistance Listing Number: 93.959 Award Period: July 1, 2022 – June 30, 2024 - Material Weakness in Internal Control Over Compliance - Other Matters Criteria: The Drug Prevention Resource Center d/b/a InnerAct Alliance’s management is responsible for establishing and maintaining internal controls to ensure that transactions are properly recorded and reported in the financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP). Part of the internal control process includes proper review and documentation of such review of transactions during the normal course of business. Condition: During review of employee timesheets and related grant reimbursement requests, and annual match report, there was a lack of evidence of review of these documents. Questioned costs: N/A Context: Samples of employee timesheets were selected for testing of review process. In addition, the annual match report was obtained for review. Cause: Lack of documentation of controls in place. Repeat finding: No Recommendation: We recommend documenting via an approval form with written or electronic signatures designating who is preparing and who is reviewing reimbursement forms and match reports. We also recommend that those approving timesheets document their approval via a signature. Views of responsible officials and planned corrective actions: No disagreement.

2023 – 003- Matching Calculation Federal Agency: Department of Health and Human Services Program Title: Substance Abuse Prevention and Treatment Black Grant (SABG) Assistance Listing Number: 93.959 Award Period: July 1, 2022 – June 30, 2024 -Material Weakness in Internal Control Over Compliance -Other Matters Criteria: The Drug Prevention Resource Center d/b/a InnerAct Alliance’s management is responsible for establishing and maintaining internal controls to ensure that transactions are properly recorded and reported in the financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP). Part of the internal control process includes proper review and documentation of such review of transactions during the normal course of business. Condition: During review of yearly match calculation report, It was noted the match was not correctly reported. Questioned costs: NA Context: InnerAct accidently submitted their mid-year numbers instead of their final year-end report on the annual match report, causing an underreporting of the match. Upon noting the error, which was identified by CLA, InnerAct submitted a modified report. Cause: Lack of proper review. Repeat finding: No Recommendation: We recommend documenting via an approval form with written or electronic signatures designating who is preparing and who is reviewing match form. Views of responsible officials and planned corrective actions: No disagreement.

2023 – 004- Timely Reporting Federal Agency: Department of Health and Human Services Program Title: Substance Abuse Prevention and Treatment Black Grant (SABG) Assistance Listing Number: 93.959 Award Period: July 1, 2022 – June 30, 2024 - Material Weakness in Internal Control over Compliance - Other Matters Criteria: Documentation of submitted reports to the Funder shall be maintained the grants manager. Per the grant agreement there are multiple reports due at various times during the month/year to the Funder. Condition: There was a lack of evidence of timely remittance of two PPG reports. There was also one instance of board listing report not submitted by required due date. Questioned costs: NA Context: Various reports were selected for sample testing. We noted 2 instances where PPG reports selected had no evidence of being submitted. There was also 1 instance of board listing report not submitted by required due date. This report was submitted a week late. Cause: Lack of proper documentation for submitting reports and meeting required deadlines. Repeat finding: No Recommendation: We recommend documenting and retaining all submittal support when reports are submitted each year. CLA also recommends that InnerAct keep track of relevant due dates to insure timely submittal of reports. Views of responsible officials and planned corrective actions: No disagreement.

2023 – 002- Lack of Review Federal Agency: Department of Health and Human Services Program Title: Substance Abuse Prevention and Treatment Black Grant (SABG) Assistance Listing Number: 93.959 Award Period: July 1, 2022 – June 30, 2024 - Material Weakness in Internal Control Over Compliance - Other Matters Criteria: The Drug Prevention Resource Center d/b/a InnerAct Alliance’s management is responsible for establishing and maintaining internal controls to ensure that transactions are properly recorded and reported in the financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP). Part of the internal control process includes proper review and documentation of such review of transactions during the normal course of business. Condition: During review of employee timesheets and related grant reimbursement requests, and annual match report, there was a lack of evidence of review of these documents. Questioned costs: N/A Context: Samples of employee timesheets were selected for testing of review process. In addition, the annual match report was obtained for review. Cause: Lack of documentation of controls in place. Repeat finding: No Recommendation: We recommend documenting via an approval form with written or electronic signatures designating who is preparing and who is reviewing reimbursement forms and match reports. We also recommend that those approving timesheets document their approval via a signature. Views of responsible officials and planned corrective actions: No disagreement.

2023 – 003- Matching Calculation Federal Agency: Department of Health and Human Services Program Title: Substance Abuse Prevention and Treatment Black Grant (SABG) Assistance Listing Number: 93.959 Award Period: July 1, 2022 – June 30, 2024 -Material Weakness in Internal Control Over Compliance -Other Matters Criteria: The Drug Prevention Resource Center d/b/a InnerAct Alliance’s management is responsible for establishing and maintaining internal controls to ensure that transactions are properly recorded and reported in the financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP). Part of the internal control process includes proper review and documentation of such review of transactions during the normal course of business. Condition: During review of yearly match calculation report, It was noted the match was not correctly reported. Questioned costs: NA Context: InnerAct accidently submitted their mid-year numbers instead of their final year-end report on the annual match report, causing an underreporting of the match. Upon noting the error, which was identified by CLA, InnerAct submitted a modified report. Cause: Lack of proper review. Repeat finding: No Recommendation: We recommend documenting via an approval form with written or electronic signatures designating who is preparing and who is reviewing match form. Views of responsible officials and planned corrective actions: No disagreement.

2023 – 004- Timely Reporting Federal Agency: Department of Health and Human Services Program Title: Substance Abuse Prevention and Treatment Black Grant (SABG) Assistance Listing Number: 93.959 Award Period: July 1, 2022 – June 30, 2024 - Material Weakness in Internal Control over Compliance - Other Matters Criteria: Documentation of submitted reports to the Funder shall be maintained the grants manager. Per the grant agreement there are multiple reports due at various times during the month/year to the Funder. Condition: There was a lack of evidence of timely remittance of two PPG reports. There was also one instance of board listing report not submitted by required due date. Questioned costs: NA Context: Various reports were selected for sample testing. We noted 2 instances where PPG reports selected had no evidence of being submitted. There was also 1 instance of board listing report not submitted by required due date. This report was submitted a week late. Cause: Lack of proper documentation for submitting reports and meeting required deadlines. Repeat finding: No Recommendation: We recommend documenting and retaining all submittal support when reports are submitted each year. CLA also recommends that InnerAct keep track of relevant due dates to insure timely submittal of reports. Views of responsible officials and planned corrective actions: No disagreement.