Audit 296624

FY End
2023-06-30
Total Expended
$3.25M
Findings
12
Programs
2
Year: 2023 Accepted: 2024-03-22

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
383575 2023-002 Significant Deficiency - AB
383576 2023-003 Significant Deficiency Yes I
383577 2023-003 Significant Deficiency Yes I
383578 2023-003 Significant Deficiency Yes I
383579 2023-004 Significant Deficiency - L
383580 2023-004 Significant Deficiency - L
960017 2023-002 Significant Deficiency - AB
960018 2023-003 Significant Deficiency Yes I
960019 2023-003 Significant Deficiency Yes I
960020 2023-003 Significant Deficiency Yes I
960021 2023-004 Significant Deficiency - L
960022 2023-004 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.959 Block Grants for Prevention and Treatment of Substance Abuse $55,542 Yes 1
93.958 Block Grants for Community Mental Health Services $30,000 - 0

Contacts

Name Title Type
QGAPLT86TEB8 Lisa Goins Auditee
3367849470 Dexter Garner Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Addiction Recovery Care Association, Inc. (the Organization) under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, functional expenses, or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Expenditures under the Block Grants for Treatment and Prevention of Substance Abuse program are recognized following the cost principles described in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the de minimis 10 percent indirect cost rate allowed under the Uniform Guidance.

Finding Details

Criteria: An entity should have adequate controls in place to ensure that costs included in federal grant reimbursement requests are allowable under the terms of the award. Condition and Context: During our review of allowable costs for the year ended June 30, 2023, we noted certain capital expenditures that were not approved in writing by the federal awarding agency or the pass-through entity as required by the cost principles outlined in 2 CFR 200.439. Questioned Costs: $26,566 Cause: Management oversight Effect: The Organization may receive reimbursements through federal programs for which it is not entitled. Repeat Finding: No Recommendation: Reinforce controls to ensure all project invoices including capital expenditures are reviewed and that only eligible costs are reported under the federal award, or that prior authorization by the federal awarding agency or pass-through entity is obtained when required. Views of Management: Management agrees with the finding and is implementing procedures that are further discussed in the corrective action plan. See Corrective Action Plan.
Criteria: All grantees that expend federal funds must comply with the procurement guidelines found in 2 CFR 200.318-.327 and use documented procurement procedures that are consistent with the applicable laws and regulations for the acquisition of property or services required under a Federal award or subaward. Condition and Context: The Organization developed a procurement policy during the year ended June 30, 2023 in response to prior audit findings; however, the policy does not include complete and current procurement procedures that fully align with the requirements of section 2 CFR 200.318-.327. The Organization’s program expenditures for the year ended June 30, 2023 did not include purchases in excess of the Simplified Acquisition Threshold and thus informal procurement procedures were acceptable. Questioned Costs: None Cause: Management oversight Effect: Without a documented procurement policy that aligns with the requirements of 2 CFR 200.318-.327, purchases may be made under the federal program that do not comply with the relevant procurement standards established by 2 CFR 200. Repeat Finding: Yes; 2022-004 Recommendation: Management should revise its procurement policy to include current language and the required elements of 2 CFR 200.318-.327. Views of Management: Management agrees with the finding and is implementing procedures that are further discussed in the corrective action plan. See Corrective Action Plan.
Criteria: All grantees that expend federal funds must comply with the procurement guidelines found in 2 CFR 200.318-.327 and use documented procurement procedures that are consistent with the applicable laws and regulations for the acquisition of property or services required under a Federal award or subaward. Condition and Context: The Organization developed a procurement policy during the year ended June 30, 2023 in response to prior audit findings; however, the policy does not include complete and current procurement procedures that fully align with the requirements of section 2 CFR 200.318-.327. The Organization’s program expenditures for the year ended June 30, 2023 did not include purchases in excess of the Simplified Acquisition Threshold and thus informal procurement procedures were acceptable. Questioned Costs: None Cause: Management oversight Effect: Without a documented procurement policy that aligns with the requirements of 2 CFR 200.318-.327, purchases may be made under the federal program that do not comply with the relevant procurement standards established by 2 CFR 200. Repeat Finding: Yes; 2022-004 Recommendation: Management should revise its procurement policy to include current language and the required elements of 2 CFR 200.318-.327. Views of Management: Management agrees with the finding and is implementing procedures that are further discussed in the corrective action plan. See Corrective Action Plan.
Criteria: All grantees that expend federal funds must comply with the procurement guidelines found in 2 CFR 200.318-.327 and use documented procurement procedures that are consistent with the applicable laws and regulations for the acquisition of property or services required under a Federal award or subaward. Condition and Context: The Organization developed a procurement policy during the year ended June 30, 2023 in response to prior audit findings; however, the policy does not include complete and current procurement procedures that fully align with the requirements of section 2 CFR 200.318-.327. The Organization’s program expenditures for the year ended June 30, 2023 did not include purchases in excess of the Simplified Acquisition Threshold and thus informal procurement procedures were acceptable. Questioned Costs: None Cause: Management oversight Effect: Without a documented procurement policy that aligns with the requirements of 2 CFR 200.318-.327, purchases may be made under the federal program that do not comply with the relevant procurement standards established by 2 CFR 200. Repeat Finding: Yes; 2022-004 Recommendation: Management should revise its procurement policy to include current language and the required elements of 2 CFR 200.318-.327. Views of Management: Management agrees with the finding and is implementing procedures that are further discussed in the corrective action plan. See Corrective Action Plan.
Criteria: The Organization’s contract for the federal award includes periodic performance reporting requirements that are due on certain dates following the reporting period-end. Condition and Context: We noted that the performance reports specified by the grant agreement were not prepared and filed in a timely manner. Questioned Costs: None Cause: Management oversight Effect: Without adequate controls over these filings requirement, the Organization may not be in compliance with the terms of the grant agreement. Repeat Finding: No Recommendation: Prepare and file the delinquent performance reports with the pass-through entity as soon as possible. Views of Management: Management agrees with the finding and is implementing procedures that are further discussed in the corrective action plan. See Corrective Action Plan.
Criteria: The Organization’s contract for the federal award includes periodic performance reporting requirements that are due on certain dates following the reporting period-end. Condition and Context: We noted that the performance reports specified by the grant agreement were not prepared and filed in a timely manner. Questioned Costs: None Cause: Management oversight Effect: Without adequate controls over these filings requirement, the Organization may not be in compliance with the terms of the grant agreement. Repeat Finding: No Recommendation: Prepare and file the delinquent performance reports with the pass-through entity as soon as possible. Views of Management: Management agrees with the finding and is implementing procedures that are further discussed in the corrective action plan. See Corrective Action Plan.
Criteria: An entity should have adequate controls in place to ensure that costs included in federal grant reimbursement requests are allowable under the terms of the award. Condition and Context: During our review of allowable costs for the year ended June 30, 2023, we noted certain capital expenditures that were not approved in writing by the federal awarding agency or the pass-through entity as required by the cost principles outlined in 2 CFR 200.439. Questioned Costs: $26,566 Cause: Management oversight Effect: The Organization may receive reimbursements through federal programs for which it is not entitled. Repeat Finding: No Recommendation: Reinforce controls to ensure all project invoices including capital expenditures are reviewed and that only eligible costs are reported under the federal award, or that prior authorization by the federal awarding agency or pass-through entity is obtained when required. Views of Management: Management agrees with the finding and is implementing procedures that are further discussed in the corrective action plan. See Corrective Action Plan.
Criteria: All grantees that expend federal funds must comply with the procurement guidelines found in 2 CFR 200.318-.327 and use documented procurement procedures that are consistent with the applicable laws and regulations for the acquisition of property or services required under a Federal award or subaward. Condition and Context: The Organization developed a procurement policy during the year ended June 30, 2023 in response to prior audit findings; however, the policy does not include complete and current procurement procedures that fully align with the requirements of section 2 CFR 200.318-.327. The Organization’s program expenditures for the year ended June 30, 2023 did not include purchases in excess of the Simplified Acquisition Threshold and thus informal procurement procedures were acceptable. Questioned Costs: None Cause: Management oversight Effect: Without a documented procurement policy that aligns with the requirements of 2 CFR 200.318-.327, purchases may be made under the federal program that do not comply with the relevant procurement standards established by 2 CFR 200. Repeat Finding: Yes; 2022-004 Recommendation: Management should revise its procurement policy to include current language and the required elements of 2 CFR 200.318-.327. Views of Management: Management agrees with the finding and is implementing procedures that are further discussed in the corrective action plan. See Corrective Action Plan.
Criteria: All grantees that expend federal funds must comply with the procurement guidelines found in 2 CFR 200.318-.327 and use documented procurement procedures that are consistent with the applicable laws and regulations for the acquisition of property or services required under a Federal award or subaward. Condition and Context: The Organization developed a procurement policy during the year ended June 30, 2023 in response to prior audit findings; however, the policy does not include complete and current procurement procedures that fully align with the requirements of section 2 CFR 200.318-.327. The Organization’s program expenditures for the year ended June 30, 2023 did not include purchases in excess of the Simplified Acquisition Threshold and thus informal procurement procedures were acceptable. Questioned Costs: None Cause: Management oversight Effect: Without a documented procurement policy that aligns with the requirements of 2 CFR 200.318-.327, purchases may be made under the federal program that do not comply with the relevant procurement standards established by 2 CFR 200. Repeat Finding: Yes; 2022-004 Recommendation: Management should revise its procurement policy to include current language and the required elements of 2 CFR 200.318-.327. Views of Management: Management agrees with the finding and is implementing procedures that are further discussed in the corrective action plan. See Corrective Action Plan.
Criteria: All grantees that expend federal funds must comply with the procurement guidelines found in 2 CFR 200.318-.327 and use documented procurement procedures that are consistent with the applicable laws and regulations for the acquisition of property or services required under a Federal award or subaward. Condition and Context: The Organization developed a procurement policy during the year ended June 30, 2023 in response to prior audit findings; however, the policy does not include complete and current procurement procedures that fully align with the requirements of section 2 CFR 200.318-.327. The Organization’s program expenditures for the year ended June 30, 2023 did not include purchases in excess of the Simplified Acquisition Threshold and thus informal procurement procedures were acceptable. Questioned Costs: None Cause: Management oversight Effect: Without a documented procurement policy that aligns with the requirements of 2 CFR 200.318-.327, purchases may be made under the federal program that do not comply with the relevant procurement standards established by 2 CFR 200. Repeat Finding: Yes; 2022-004 Recommendation: Management should revise its procurement policy to include current language and the required elements of 2 CFR 200.318-.327. Views of Management: Management agrees with the finding and is implementing procedures that are further discussed in the corrective action plan. See Corrective Action Plan.
Criteria: The Organization’s contract for the federal award includes periodic performance reporting requirements that are due on certain dates following the reporting period-end. Condition and Context: We noted that the performance reports specified by the grant agreement were not prepared and filed in a timely manner. Questioned Costs: None Cause: Management oversight Effect: Without adequate controls over these filings requirement, the Organization may not be in compliance with the terms of the grant agreement. Repeat Finding: No Recommendation: Prepare and file the delinquent performance reports with the pass-through entity as soon as possible. Views of Management: Management agrees with the finding and is implementing procedures that are further discussed in the corrective action plan. See Corrective Action Plan.
Criteria: The Organization’s contract for the federal award includes periodic performance reporting requirements that are due on certain dates following the reporting period-end. Condition and Context: We noted that the performance reports specified by the grant agreement were not prepared and filed in a timely manner. Questioned Costs: None Cause: Management oversight Effect: Without adequate controls over these filings requirement, the Organization may not be in compliance with the terms of the grant agreement. Repeat Finding: No Recommendation: Prepare and file the delinquent performance reports with the pass-through entity as soon as possible. Views of Management: Management agrees with the finding and is implementing procedures that are further discussed in the corrective action plan. See Corrective Action Plan.