Audit 307202

Finding: 2023-003 –Significant Deficiency in Internal Control over Compliance and Noncompliance – Allowable Costs/Cost Principles Identification of federal program: 93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance Criteria: For purposes of the federal government, 2 CFR Chapter II part 200 Subpart E §200.403 requires except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: (g) Be adequately documented. Condition: Expenditures charged to the federal award was not consistent with supporting documentation. Cause: The Organizations controls in place did not operate effectively to prevent or detect the error. Effect or potential effect: The Organization is not in compliance with 2 CFR §200.403 Questioned Costs: None Context: For this program, a sample of forty expenditures were tested for allowable cost/cost principles. Of the forty samples tested, one of the expenditures did not have adequate documentation to support the amount charged to the federal award. Identification of Repeat Finding: Not applicable. Recommendations: Management should review and assess the effectiveness of internal controls to ensure that the amounts charged to the federal awards have adequate documentation.Views of Responsible Officials: Please refer to Corrective Action Plan.

Finding: 2023-004 –Significant Deficiency in Internal Control over Compliance and Noncompliance – Cash Management Identification of federal program: 93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance Criteria: For purposes of the federal government, 2 CFR Chapter II part 200 Subpart D §200.305 requires for non-Federal entities other than states, payments methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition: Cash draw downs and receipt of federal funds exceeded the amount expended and ultimately were required to be returned. Cause: The Organization did not have controls in place to minimize the time elapsing between the transfer of funds from the United States Treasury and the disbursement of the funds by the Organization. Effect or potential effect: The Organization is not in compliance with 2 CFR §200.305 Questioned Costs: None Context: For this program, a sample of three drawdowns were selected. Two of the three drawdowns exceeded the amount of expenditures incurred at the time of the drawdown and cumulatively through the period of performance requiring the funds to be returned. Identification of Repeat Finding: Not applicable. Recommendations: Management should implement controls to minimize the time elapsing between the transfer of funds from the United States Treasury and the disbursement of the funds by the Organization. Views of Responsible Officials: Please refer to Corrective Action Plan.

Finding: 2023-003 –Significant Deficiency in Internal Control over Compliance and Noncompliance – Allowable Costs/Cost Principles Identification of federal program: 93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance Criteria: For purposes of the federal government, 2 CFR Chapter II part 200 Subpart E §200.403 requires except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: (g) Be adequately documented. Condition: Expenditures charged to the federal award was not consistent with supporting documentation. Cause: The Organizations controls in place did not operate effectively to prevent or detect the error. Effect or potential effect: The Organization is not in compliance with 2 CFR §200.403 Questioned Costs: None Context: For this program, a sample of forty expenditures were tested for allowable cost/cost principles. Of the forty samples tested, one of the expenditures did not have adequate documentation to support the amount charged to the federal award. Identification of Repeat Finding: Not applicable. Recommendations: Management should review and assess the effectiveness of internal controls to ensure that the amounts charged to the federal awards have adequate documentation.Views of Responsible Officials: Please refer to Corrective Action Plan.

Finding: 2023-004 –Significant Deficiency in Internal Control over Compliance and Noncompliance – Cash Management Identification of federal program: 93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance Criteria: For purposes of the federal government, 2 CFR Chapter II part 200 Subpart D §200.305 requires for non-Federal entities other than states, payments methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition: Cash draw downs and receipt of federal funds exceeded the amount expended and ultimately were required to be returned. Cause: The Organization did not have controls in place to minimize the time elapsing between the transfer of funds from the United States Treasury and the disbursement of the funds by the Organization. Effect or potential effect: The Organization is not in compliance with 2 CFR §200.305 Questioned Costs: None Context: For this program, a sample of three drawdowns were selected. Two of the three drawdowns exceeded the amount of expenditures incurred at the time of the drawdown and cumulatively through the period of performance requiring the funds to be returned. Identification of Repeat Finding: Not applicable. Recommendations: Management should implement controls to minimize the time elapsing between the transfer of funds from the United States Treasury and the disbursement of the funds by the Organization. Views of Responsible Officials: Please refer to Corrective Action Plan.