FAC Explorer

Audit 300569

FY End
2023-06-30
Total Expended
$770,423
Findings
2
Programs
3
Organization: North Central Behavioral Health Systems, Inc. (IL)
Year: 2023 Accepted: 2024-03-29
Auditor: Rsm US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
389663 2023-003 Material Weakness - C
966105 2023-003 Material Weakness - C

Programs

ALN Program Spent Major Findings
93.959 Block Grants for Prevention and Treatment of Substance Abuse $373,541 Yes 1
93.958 Block Grants for Community Mental Health Services $300,962 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $95,920 - 0

Contacts

Name Title Type
LW1PUM51K839 Diane Garland Auditee
8152230160 Ryan Caldwell Auditor
No contacts on file

Notes to SEFA

Title: Note 1: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained 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: NCBHS has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of North Central Behavioral Health Systems, Inc. (NCBHS) 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 Title 2 U.S. Code of Federal Regulations 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 NCBHS, it is not intended to and does not present the financial position, changes in net assets or cash flows of NCBHS.
Title: Note 2: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained 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: NCBHS has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3: Noncash Assistance, Insurance, Loans and Loan Guarantees Outstanding Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained 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: NCBHS has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. NCBHS did not receive any noncash assistance during the year ended June 30, 2023. There were no federal awards expended for insurance or any loans or loan guarantees outstanding as of June 30, 2023.
Title: Note 4: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained 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: NCBHS has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. NCBHS has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance.

Finding Details

Finding 2023-003
Finding 2023-003: Internal Controls over Cash Management Federal Grantor: U.S. Department of Health and Human Services Pass-Through Grantor: Illinois Department of Human Services Federal Program: Block Grants for Prevention and Treatment of Substance Abuse (93.959) Federal Award Year: Year ended June 30, 2023 Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200.303(c) requires non-Federal entities to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission. Condition: During our testing, we noted that internal controls over the Federal award were not properly designed over the cash management compliance requirement. NCBHS is funded under the reimbursement method, and we were not able to test internal controls over the review of cash reimbursement requests submitted to the grantor. Cause: NCBHS management stated that cash reimbursement requests were reviewed prior to submission to the grantor, but there was no verifiable evidence that the reviews took place. Effect: Internal controls over Federal awards that are not properly designed increases the risk of noncompliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement. Questioned Costs: None Context: We tested 6 cash reimbursement requests and noted that there was no evidence of review for any of the requests. Repeat Finding: No Recommendation: We recommend that management develop a formal policy for documenting internal control activities. Views of Responsible Officials: NCBHS agrees with the recommendation.
Finding 2023-003
Finding 2023-003: Internal Controls over Cash Management Federal Grantor: U.S. Department of Health and Human Services Pass-Through Grantor: Illinois Department of Human Services Federal Program: Block Grants for Prevention and Treatment of Substance Abuse (93.959) Federal Award Year: Year ended June 30, 2023 Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200.303(c) requires non-Federal entities to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission. Condition: During our testing, we noted that internal controls over the Federal award were not properly designed over the cash management compliance requirement. NCBHS is funded under the reimbursement method, and we were not able to test internal controls over the review of cash reimbursement requests submitted to the grantor. Cause: NCBHS management stated that cash reimbursement requests were reviewed prior to submission to the grantor, but there was no verifiable evidence that the reviews took place. Effect: Internal controls over Federal awards that are not properly designed increases the risk of noncompliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement. Questioned Costs: None Context: We tested 6 cash reimbursement requests and noted that there was no evidence of review for any of the requests. Repeat Finding: No Recommendation: We recommend that management develop a formal policy for documenting internal control activities. Views of Responsible Officials: NCBHS agrees with the recommendation.