Audit 310759

FY End

2023-09-30

Total Expended

$1.03M

Findings

4

Programs

3

Organization: Addiction Treatment Services, Inc. (MI)

Year: 2023 Accepted: 2024-06-28

Auditor: Rehmann Robson LLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
403886	2023-002	Significant Deficiency	-	B
403887	2023-002	Significant Deficiency	-	B
980328	2023-002	Significant Deficiency	-	B
980329	2023-002	Significant Deficiency	-	B

ALN	Program	Spent	Major	Findings
93.498	Provider Relief Fund	$271,546	Yes	1
93.788	Opioid Str	$90,400	-	0
93.959	Block Grants for Prevention and Treatment of Substance Abuse	$4,644	-	0

Contacts

Name	Title	Type
S1WLJ5TXNM85	Luke Crimmins	Auditee
2313460045	Paula Bedford, CPA	Auditor
No contacts on file

Notes to SEFA

Title: PROVIDER RELIEF FUNDS Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of Addiction Treatment Services, Inc. and Affiliates (the "Organization") under programs of the federal government for the year ended September 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 the Organization, it is not intended to and does not present the financial position, changes in assets or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the Organization's consolidated financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the Organization has not elected to use the de minimis cost rate as permitted by §200.414 of the Uniform Guidance. The Organization received $442,806 from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund (PRF) program (Assistance Listing Number 93.498) during the year ended September 30, 2022. The Organization had eligible lost revenue and recognized revenue totaling $442,806 for the year ended September 30, 2022, in the financial statements. In accordance with the compliance supplement addendum, the PRF expenditures recognized on the Schedule are based on the reporting to HHS for Period 4 (expenditures or lost revenue through December 31, 2022) as required under the PRF program.

Title: PASS-THROUGH AGENCIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of Addiction Treatment Services, Inc. and Affiliates (the "Organization") under programs of the federal government for the year ended September 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 the Organization, it is not intended to and does not present the financial position, changes in assets or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the Organization's consolidated financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or other applicable guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the Organization has not elected to use the de minimis cost rate as permitted by §200.414 of the Uniform Guidance. The Organization receives certain federal grants as subawards from non-federal entities. Pass-through entities, where applicable, have been identified in the Schedule with an abbreviation, defined as follows: "See the notes to the SEFA for chart/table".

Finding Details

Finding 2023-002

Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Controls over Compliance (Allowable Costs/Cost Principles) Federal Program. COVID-19 Provider Relief Funds and American Rescue Plan (ARP); Rural Distribution; Directly funded (ALN # 93.498) Criteria. The Uniform Guidance requires that the Organization have written policies covering payments, procurement, allowability of costs charged to federal programs, compensation, and travel costs. Condition. The Organization lacks written policies around federal awards for payments, procurement, and allowability of costs charged to federal programs. Cause. Management does not have the proper written policies in place to be in compliance with the Uniform Guidance. Effect. The Organization is exposed to an increased risk of noncompliance due to a lack of established written policies. Questioned Costs. No costs were required to be questioned as a result of this finding, inasmuch as our testing did not reveal any unallowed costs. Recommendation. The Organization should establish written policies that address how payments, procurement, and allowability of costs charged to federal programs are handled for federal awards. View of Responsible Officials. Management agrees with this finding and has prepared a corrective action plan.

Finding 2023-002

Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Controls over Compliance (Allowable Costs/Cost Principles) Federal Program. COVID-19 Provider Relief Funds and American Rescue Plan (ARP); Rural Distribution; Directly funded (ALN # 93.498) Criteria. The Uniform Guidance requires that the Organization have written policies covering payments, procurement, allowability of costs charged to federal programs, compensation, and travel costs. Condition. The Organization lacks written policies around federal awards for payments, procurement, and allowability of costs charged to federal programs. Cause. Management does not have the proper written policies in place to be in compliance with the Uniform Guidance. Effect. The Organization is exposed to an increased risk of noncompliance due to a lack of established written policies. Questioned Costs. No costs were required to be questioned as a result of this finding, inasmuch as our testing did not reveal any unallowed costs. Recommendation. The Organization should establish written policies that address how payments, procurement, and allowability of costs charged to federal programs are handled for federal awards. View of Responsible Officials. Management agrees with this finding and has prepared a corrective action plan.

Finding 2023-002

Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Controls over Compliance (Allowable Costs/Cost Principles) Federal Program. COVID-19 Provider Relief Funds and American Rescue Plan (ARP); Rural Distribution; Directly funded (ALN # 93.498) Criteria. The Uniform Guidance requires that the Organization have written policies covering payments, procurement, allowability of costs charged to federal programs, compensation, and travel costs. Condition. The Organization lacks written policies around federal awards for payments, procurement, and allowability of costs charged to federal programs. Cause. Management does not have the proper written policies in place to be in compliance with the Uniform Guidance. Effect. The Organization is exposed to an increased risk of noncompliance due to a lack of established written policies. Questioned Costs. No costs were required to be questioned as a result of this finding, inasmuch as our testing did not reveal any unallowed costs. Recommendation. The Organization should establish written policies that address how payments, procurement, and allowability of costs charged to federal programs are handled for federal awards. View of Responsible Officials. Management agrees with this finding and has prepared a corrective action plan.

Finding 2023-002

Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Controls over Compliance (Allowable Costs/Cost Principles) Federal Program. COVID-19 Provider Relief Funds and American Rescue Plan (ARP); Rural Distribution; Directly funded (ALN # 93.498) Criteria. The Uniform Guidance requires that the Organization have written policies covering payments, procurement, allowability of costs charged to federal programs, compensation, and travel costs. Condition. The Organization lacks written policies around federal awards for payments, procurement, and allowability of costs charged to federal programs. Cause. Management does not have the proper written policies in place to be in compliance with the Uniform Guidance. Effect. The Organization is exposed to an increased risk of noncompliance due to a lack of established written policies. Questioned Costs. No costs were required to be questioned as a result of this finding, inasmuch as our testing did not reveal any unallowed costs. Recommendation. The Organization should establish written policies that address how payments, procurement, and allowability of costs charged to federal programs are handled for federal awards. View of Responsible Officials. Management agrees with this finding and has prepared a corrective action plan.