Audit 297935

FY End
2023-06-30
Total Expended
$860,167
Findings
12
Programs
1
Year: 2023 Accepted: 2024-03-26
Auditor: Mason + Rich P A

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
384819 2023-001 Material Weakness - ABM
384820 2023-001 Material Weakness - ABM
384821 2023-001 Material Weakness - ABM
384822 2023-002 Material Weakness - ABM
384823 2023-002 Material Weakness - ABM
384824 2023-002 Material Weakness - ABM
961261 2023-001 Material Weakness - ABM
961262 2023-001 Material Weakness - ABM
961263 2023-001 Material Weakness - ABM
961264 2023-002 Material Weakness - ABM
961265 2023-002 Material Weakness - ABM
961266 2023-002 Material Weakness - ABM

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $250,000 Yes 2

Contacts

Name Title Type
HMBMTM3XMYY8 Roland Lamy Auditee
6032256633 Andrew Luce Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Basis of presentation, basis of accounting, program costs and indirect costs. De Minimis Rate Used: N Rate Explanation: The Association did not expend federal grant funds to indirect costs. Therefore, the Association has elected to not use the 10 percent de minimis indirect cost rate under the Uniform Guidance. All costs associated with federal expenditures were direct costs. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of NH Community Behavioral Health Association (the “Association”) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of NH Community Behavioral Health Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of NH Community Behavioral Health Association.
Title: BASIS OF ACCOUNTING Accounting Policies: Basis of presentation, basis of accounting, program costs and indirect costs. De Minimis Rate Used: N Rate Explanation: The Association did not expend federal grant funds to indirect costs. Therefore, the Association has elected to not use the 10 percent de minimis indirect cost rate under the Uniform Guidance. All costs associated with federal expenditures were direct costs. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Expenditures represent only the federally funded portions of the program. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: PROGRAM COSTS Accounting Policies: Basis of presentation, basis of accounting, program costs and indirect costs. De Minimis Rate Used: N Rate Explanation: The Association did not expend federal grant funds to indirect costs. Therefore, the Association has elected to not use the 10 percent de minimis indirect cost rate under the Uniform Guidance. All costs associated with federal expenditures were direct costs. The amounts shown as current year expenditures represents only the federal grant portion of the program costs. Entire program costs could be more than shown. Such expenditure are recognized following, as applicable, either the cost principals in the OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: INDIRECT COSTS Accounting Policies: Basis of presentation, basis of accounting, program costs and indirect costs. De Minimis Rate Used: N Rate Explanation: The Association did not expend federal grant funds to indirect costs. Therefore, the Association has elected to not use the 10 percent de minimis indirect cost rate under the Uniform Guidance. All costs associated with federal expenditures were direct costs. The Association did not expend federal grant funds to indirect costs. Therefore, the Association has elected to not use the 10 percent de minimis indirect cost rate under the Uniform Guidance. All costs associated with federal expenditures were direct costs.

Finding Details

Condition: Management and the Board of Directors incorrectly assumed the Association did not have a Single Audit requirement for fiscal year ending 2023. There is a control established for management and Board of Directors to review funding agreements, however, the control was ineffective at identifying the Single Audit requirement. Criteria: The Association’s review of funding source agreements should properly identify Single Audit requirements. This is vital to ensure all of its obligations and requirements are completely fulfilled. Cause: There was a procedure in place to review grant and other funding source agreements, however, the Single Audit requirement was not appropriately identified. Effect: It’s reasonably possible that this deficiency could have resulted in non-compliance of the Single Audit requirement as well as the direct and material compliance requirements associated with the federal funding program. Unchecked compliance and internal controls over compliance could have resulted in undetected issues. It is vital to ensure the Associations identifies all of its obligations and requirements and allocates resources necessary to ensure they are completely fulfilled. Recommendation: We recommend that personnel review contract and grant agreements to properly identify Single Audit requirements. We also recommend, if there is any uncertainty in source of funds (Federal v. State), that appropriate Federal and State officials are contacted to resolve the uncertainty.
Condition: Management and the Board of Directors incorrectly assumed the Association did not have a Single Audit requirement for fiscal year ending 2023. There is a control established for management and Board of Directors to review funding agreements, however, the control was ineffective at identifying the Single Audit requirement. Criteria: The Association’s review of funding source agreements should properly identify Single Audit requirements. This is vital to ensure all of its obligations and requirements are completely fulfilled. Cause: There was a procedure in place to review grant and other funding source agreements, however, the Single Audit requirement was not appropriately identified. Effect: It’s reasonably possible that this deficiency could have resulted in non-compliance of the Single Audit requirement as well as the direct and material compliance requirements associated with the federal funding program. Unchecked compliance and internal controls over compliance could have resulted in undetected issues. It is vital to ensure the Associations identifies all of its obligations and requirements and allocates resources necessary to ensure they are completely fulfilled. Recommendation: We recommend that personnel review contract and grant agreements to properly identify Single Audit requirements. We also recommend, if there is any uncertainty in source of funds (Federal v. State), that appropriate Federal and State officials are contacted to resolve the uncertainty.
Condition: Management and the Board of Directors incorrectly assumed the Association did not have a Single Audit requirement for fiscal year ending 2023. There is a control established for management and Board of Directors to review funding agreements, however, the control was ineffective at identifying the Single Audit requirement. Criteria: The Association’s review of funding source agreements should properly identify Single Audit requirements. This is vital to ensure all of its obligations and requirements are completely fulfilled. Cause: There was a procedure in place to review grant and other funding source agreements, however, the Single Audit requirement was not appropriately identified. Effect: It’s reasonably possible that this deficiency could have resulted in non-compliance of the Single Audit requirement as well as the direct and material compliance requirements associated with the federal funding program. Unchecked compliance and internal controls over compliance could have resulted in undetected issues. It is vital to ensure the Associations identifies all of its obligations and requirements and allocates resources necessary to ensure they are completely fulfilled. Recommendation: We recommend that personnel review contract and grant agreements to properly identify Single Audit requirements. We also recommend, if there is any uncertainty in source of funds (Federal v. State), that appropriate Federal and State officials are contacted to resolve the uncertainty.
Condition: Accounting personnel accumulate invoices from the Community Mental Health Centers (CMHCs) for reimbursement under the COVID-19 Education Stabilization Program (aka the DOE Summer Camp program). After the invoices are accumulated the same accounting personnel prepares an invoice and submits the invoice and support to the State of New Hampshire, Department of Education (NH DOE) for reimbursement. While conducting our audit, we noted that no supervisory review of invoices prior to mailing them to the NHDOE. Criteria: Implementing the control to review invoices will allow for use of federal funds to be more closely monitored. Cause: There was no procedure in place to review invoices prepared and submitted to the State of New Hampshire, Department of Education for expense reimbursements. Effect: The lack of controls did not result in known material non-compliance, however, it is reasonably possible that this deficiency could have resulted in non-compliance or misappropriation of assets. Specifically, the lack of supervisory review could have resulted in reimbursement of costs that are not allowed, reimbursement of expenses for activities that are unallowed, and/or misappropriation of federal funding whether due to inadvertent error or intentional misappropriation of assets. Recommendation: We recommend that appropriate personnel review invoices prior to requesting reimbursement from the NH DOE.
Condition: Accounting personnel accumulate invoices from the Community Mental Health Centers (CMHCs) for reimbursement under the COVID-19 Education Stabilization Program (aka the DOE Summer Camp program). After the invoices are accumulated the same accounting personnel prepares an invoice and submits the invoice and support to the State of New Hampshire, Department of Education (NH DOE) for reimbursement. While conducting our audit, we noted that no supervisory review of invoices prior to mailing them to the NHDOE. Criteria: Implementing the control to review invoices will allow for use of federal funds to be more closely monitored. Cause: There was no procedure in place to review invoices prepared and submitted to the State of New Hampshire, Department of Education for expense reimbursements. Effect: The lack of controls did not result in known material non-compliance, however, it is reasonably possible that this deficiency could have resulted in non-compliance or misappropriation of assets. Specifically, the lack of supervisory review could have resulted in reimbursement of costs that are not allowed, reimbursement of expenses for activities that are unallowed, and/or misappropriation of federal funding whether due to inadvertent error or intentional misappropriation of assets. Recommendation: We recommend that appropriate personnel review invoices prior to requesting reimbursement from the NH DOE.
Condition: Accounting personnel accumulate invoices from the Community Mental Health Centers (CMHCs) for reimbursement under the COVID-19 Education Stabilization Program (aka the DOE Summer Camp program). After the invoices are accumulated the same accounting personnel prepares an invoice and submits the invoice and support to the State of New Hampshire, Department of Education (NH DOE) for reimbursement. While conducting our audit, we noted that no supervisory review of invoices prior to mailing them to the NHDOE. Criteria: Implementing the control to review invoices will allow for use of federal funds to be more closely monitored. Cause: There was no procedure in place to review invoices prepared and submitted to the State of New Hampshire, Department of Education for expense reimbursements. Effect: The lack of controls did not result in known material non-compliance, however, it is reasonably possible that this deficiency could have resulted in non-compliance or misappropriation of assets. Specifically, the lack of supervisory review could have resulted in reimbursement of costs that are not allowed, reimbursement of expenses for activities that are unallowed, and/or misappropriation of federal funding whether due to inadvertent error or intentional misappropriation of assets. Recommendation: We recommend that appropriate personnel review invoices prior to requesting reimbursement from the NH DOE.
Condition: Management and the Board of Directors incorrectly assumed the Association did not have a Single Audit requirement for fiscal year ending 2023. There is a control established for management and Board of Directors to review funding agreements, however, the control was ineffective at identifying the Single Audit requirement. Criteria: The Association’s review of funding source agreements should properly identify Single Audit requirements. This is vital to ensure all of its obligations and requirements are completely fulfilled. Cause: There was a procedure in place to review grant and other funding source agreements, however, the Single Audit requirement was not appropriately identified. Effect: It’s reasonably possible that this deficiency could have resulted in non-compliance of the Single Audit requirement as well as the direct and material compliance requirements associated with the federal funding program. Unchecked compliance and internal controls over compliance could have resulted in undetected issues. It is vital to ensure the Associations identifies all of its obligations and requirements and allocates resources necessary to ensure they are completely fulfilled. Recommendation: We recommend that personnel review contract and grant agreements to properly identify Single Audit requirements. We also recommend, if there is any uncertainty in source of funds (Federal v. State), that appropriate Federal and State officials are contacted to resolve the uncertainty.
Condition: Management and the Board of Directors incorrectly assumed the Association did not have a Single Audit requirement for fiscal year ending 2023. There is a control established for management and Board of Directors to review funding agreements, however, the control was ineffective at identifying the Single Audit requirement. Criteria: The Association’s review of funding source agreements should properly identify Single Audit requirements. This is vital to ensure all of its obligations and requirements are completely fulfilled. Cause: There was a procedure in place to review grant and other funding source agreements, however, the Single Audit requirement was not appropriately identified. Effect: It’s reasonably possible that this deficiency could have resulted in non-compliance of the Single Audit requirement as well as the direct and material compliance requirements associated with the federal funding program. Unchecked compliance and internal controls over compliance could have resulted in undetected issues. It is vital to ensure the Associations identifies all of its obligations and requirements and allocates resources necessary to ensure they are completely fulfilled. Recommendation: We recommend that personnel review contract and grant agreements to properly identify Single Audit requirements. We also recommend, if there is any uncertainty in source of funds (Federal v. State), that appropriate Federal and State officials are contacted to resolve the uncertainty.
Condition: Management and the Board of Directors incorrectly assumed the Association did not have a Single Audit requirement for fiscal year ending 2023. There is a control established for management and Board of Directors to review funding agreements, however, the control was ineffective at identifying the Single Audit requirement. Criteria: The Association’s review of funding source agreements should properly identify Single Audit requirements. This is vital to ensure all of its obligations and requirements are completely fulfilled. Cause: There was a procedure in place to review grant and other funding source agreements, however, the Single Audit requirement was not appropriately identified. Effect: It’s reasonably possible that this deficiency could have resulted in non-compliance of the Single Audit requirement as well as the direct and material compliance requirements associated with the federal funding program. Unchecked compliance and internal controls over compliance could have resulted in undetected issues. It is vital to ensure the Associations identifies all of its obligations and requirements and allocates resources necessary to ensure they are completely fulfilled. Recommendation: We recommend that personnel review contract and grant agreements to properly identify Single Audit requirements. We also recommend, if there is any uncertainty in source of funds (Federal v. State), that appropriate Federal and State officials are contacted to resolve the uncertainty.
Condition: Accounting personnel accumulate invoices from the Community Mental Health Centers (CMHCs) for reimbursement under the COVID-19 Education Stabilization Program (aka the DOE Summer Camp program). After the invoices are accumulated the same accounting personnel prepares an invoice and submits the invoice and support to the State of New Hampshire, Department of Education (NH DOE) for reimbursement. While conducting our audit, we noted that no supervisory review of invoices prior to mailing them to the NHDOE. Criteria: Implementing the control to review invoices will allow for use of federal funds to be more closely monitored. Cause: There was no procedure in place to review invoices prepared and submitted to the State of New Hampshire, Department of Education for expense reimbursements. Effect: The lack of controls did not result in known material non-compliance, however, it is reasonably possible that this deficiency could have resulted in non-compliance or misappropriation of assets. Specifically, the lack of supervisory review could have resulted in reimbursement of costs that are not allowed, reimbursement of expenses for activities that are unallowed, and/or misappropriation of federal funding whether due to inadvertent error or intentional misappropriation of assets. Recommendation: We recommend that appropriate personnel review invoices prior to requesting reimbursement from the NH DOE.
Condition: Accounting personnel accumulate invoices from the Community Mental Health Centers (CMHCs) for reimbursement under the COVID-19 Education Stabilization Program (aka the DOE Summer Camp program). After the invoices are accumulated the same accounting personnel prepares an invoice and submits the invoice and support to the State of New Hampshire, Department of Education (NH DOE) for reimbursement. While conducting our audit, we noted that no supervisory review of invoices prior to mailing them to the NHDOE. Criteria: Implementing the control to review invoices will allow for use of federal funds to be more closely monitored. Cause: There was no procedure in place to review invoices prepared and submitted to the State of New Hampshire, Department of Education for expense reimbursements. Effect: The lack of controls did not result in known material non-compliance, however, it is reasonably possible that this deficiency could have resulted in non-compliance or misappropriation of assets. Specifically, the lack of supervisory review could have resulted in reimbursement of costs that are not allowed, reimbursement of expenses for activities that are unallowed, and/or misappropriation of federal funding whether due to inadvertent error or intentional misappropriation of assets. Recommendation: We recommend that appropriate personnel review invoices prior to requesting reimbursement from the NH DOE.
Condition: Accounting personnel accumulate invoices from the Community Mental Health Centers (CMHCs) for reimbursement under the COVID-19 Education Stabilization Program (aka the DOE Summer Camp program). After the invoices are accumulated the same accounting personnel prepares an invoice and submits the invoice and support to the State of New Hampshire, Department of Education (NH DOE) for reimbursement. While conducting our audit, we noted that no supervisory review of invoices prior to mailing them to the NHDOE. Criteria: Implementing the control to review invoices will allow for use of federal funds to be more closely monitored. Cause: There was no procedure in place to review invoices prepared and submitted to the State of New Hampshire, Department of Education for expense reimbursements. Effect: The lack of controls did not result in known material non-compliance, however, it is reasonably possible that this deficiency could have resulted in non-compliance or misappropriation of assets. Specifically, the lack of supervisory review could have resulted in reimbursement of costs that are not allowed, reimbursement of expenses for activities that are unallowed, and/or misappropriation of federal funding whether due to inadvertent error or intentional misappropriation of assets. Recommendation: We recommend that appropriate personnel review invoices prior to requesting reimbursement from the NH DOE.