Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-004: Allowable Costs/Cost Principles - Time and Effort Reporting (Material
Weakness)
Criteria:
The distribution of the salaries and wages to awards must be supported by personnel activity reports or
timesheets. Personnel activity reports or timesheets reflecting the distribution of activity of each
employee must be maintained for all staff members whose compensation is charged, in whole or in
part, to government funded contracts.
The reports must reflect an after-the-fact determination of the actual activity of each employee. Each
report must account for total activity for which employees are compensated and which is required in
fulfillment of their obligations. The report must be signed by the individual employee, or by a
responsible supervisory official having knowledge of the activities performed by the employee, that the
distribution of activity represents a reasonable estimate of the actual work performed by the employee
during the periods covered by the reports. The reports must be prepared at least monthly and must
coincide with one or more pay periods.
Statement of Condition:
For all selected samples, there were no personnel activity reports or timesheets to evidence the
allocation of time to government contracts.
Cause:
Procedures and internal controls associated with actual time and effort charged to government
contracts were not in place.
Effect:
Management did not have sufficient documentation for the allocation of time to government contracts.
Questioned Costs:
$107,080
Perspective Information:
The sampling was a statistically valid sample and the finding applied to all selected samples and
represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-001.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that all time
and effort allocations to federal programs are appropriately documented to comply with applicable cost
principles.
Views of Responsible Officials:
Management is in agreement with the finding. Management has implemented additional policies,
procedures and controls to document the allocation of time and effort
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-004: Allowable Costs/Cost Principles - Time and Effort Reporting (Material
Weakness)
Criteria:
The distribution of the salaries and wages to awards must be supported by personnel activity reports or
timesheets. Personnel activity reports or timesheets reflecting the distribution of activity of each
employee must be maintained for all staff members whose compensation is charged, in whole or in
part, to government funded contracts.
The reports must reflect an after-the-fact determination of the actual activity of each employee. Each
report must account for total activity for which employees are compensated and which is required in
fulfillment of their obligations. The report must be signed by the individual employee, or by a
responsible supervisory official having knowledge of the activities performed by the employee, that the
distribution of activity represents a reasonable estimate of the actual work performed by the employee
during the periods covered by the reports. The reports must be prepared at least monthly and must
coincide with one or more pay periods.
Statement of Condition:
For all selected samples, there were no personnel activity reports or timesheets to evidence the
allocation of time to government contracts.
Cause:
Procedures and internal controls associated with actual time and effort charged to government
contracts were not in place.
Effect:
Management did not have sufficient documentation for the allocation of time to government contracts.
Questioned Costs:
$107,080
Perspective Information:
The sampling was a statistically valid sample and the finding applied to all selected samples and
represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-001.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that all time
and effort allocations to federal programs are appropriately documented to comply with applicable cost
principles.
Views of Responsible Officials:
Management is in agreement with the finding. Management has implemented additional policies,
procedures and controls to document the allocation of time and effort
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-004: Allowable Costs/Cost Principles - Time and Effort Reporting (Material
Weakness)
Criteria:
The distribution of the salaries and wages to awards must be supported by personnel activity reports or
timesheets. Personnel activity reports or timesheets reflecting the distribution of activity of each
employee must be maintained for all staff members whose compensation is charged, in whole or in
part, to government funded contracts.
The reports must reflect an after-the-fact determination of the actual activity of each employee. Each
report must account for total activity for which employees are compensated and which is required in
fulfillment of their obligations. The report must be signed by the individual employee, or by a
responsible supervisory official having knowledge of the activities performed by the employee, that the
distribution of activity represents a reasonable estimate of the actual work performed by the employee
during the periods covered by the reports. The reports must be prepared at least monthly and must
coincide with one or more pay periods.
Statement of Condition:
For all selected samples, there were no personnel activity reports or timesheets to evidence the
allocation of time to government contracts.
Cause:
Procedures and internal controls associated with actual time and effort charged to government
contracts were not in place.
Effect:
Management did not have sufficient documentation for the allocation of time to government contracts.
Questioned Costs:
$107,080
Perspective Information:
The sampling was a statistically valid sample and the finding applied to all selected samples and
represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-001.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that all time
and effort allocations to federal programs are appropriately documented to comply with applicable cost
principles.
Views of Responsible Officials:
Management is in agreement with the finding. Management has implemented additional policies,
procedures and controls to document the allocation of time and effort
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-004: Allowable Costs/Cost Principles - Time and Effort Reporting (Material
Weakness)
Criteria:
The distribution of the salaries and wages to awards must be supported by personnel activity reports or
timesheets. Personnel activity reports or timesheets reflecting the distribution of activity of each
employee must be maintained for all staff members whose compensation is charged, in whole or in
part, to government funded contracts.
The reports must reflect an after-the-fact determination of the actual activity of each employee. Each
report must account for total activity for which employees are compensated and which is required in
fulfillment of their obligations. The report must be signed by the individual employee, or by a
responsible supervisory official having knowledge of the activities performed by the employee, that the
distribution of activity represents a reasonable estimate of the actual work performed by the employee
during the periods covered by the reports. The reports must be prepared at least monthly and must
coincide with one or more pay periods.
Statement of Condition:
For all selected samples, there were no personnel activity reports or timesheets to evidence the
allocation of time to government contracts.
Cause:
Procedures and internal controls associated with actual time and effort charged to government
contracts were not in place.
Effect:
Management did not have sufficient documentation for the allocation of time to government contracts.
Questioned Costs:
$107,080
Perspective Information:
The sampling was a statistically valid sample and the finding applied to all selected samples and
represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-001.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that all time
and effort allocations to federal programs are appropriately documented to comply with applicable cost
principles.
Views of Responsible Officials:
Management is in agreement with the finding. Management has implemented additional policies,
procedures and controls to document the allocation of time and effort
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-004: Allowable Costs/Cost Principles - Time and Effort Reporting (Material
Weakness)
Criteria:
The distribution of the salaries and wages to awards must be supported by personnel activity reports or
timesheets. Personnel activity reports or timesheets reflecting the distribution of activity of each
employee must be maintained for all staff members whose compensation is charged, in whole or in
part, to government funded contracts.
The reports must reflect an after-the-fact determination of the actual activity of each employee. Each
report must account for total activity for which employees are compensated and which is required in
fulfillment of their obligations. The report must be signed by the individual employee, or by a
responsible supervisory official having knowledge of the activities performed by the employee, that the
distribution of activity represents a reasonable estimate of the actual work performed by the employee
during the periods covered by the reports. The reports must be prepared at least monthly and must
coincide with one or more pay periods.
Statement of Condition:
For all selected samples, there were no personnel activity reports or timesheets to evidence the
allocation of time to government contracts.
Cause:
Procedures and internal controls associated with actual time and effort charged to government
contracts were not in place.
Effect:
Management did not have sufficient documentation for the allocation of time to government contracts.
Questioned Costs:
$107,080
Perspective Information:
The sampling was a statistically valid sample and the finding applied to all selected samples and
represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-001.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that all time
and effort allocations to federal programs are appropriately documented to comply with applicable cost
principles.
Views of Responsible Officials:
Management is in agreement with the finding. Management has implemented additional policies,
procedures and controls to document the allocation of time and effort
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-004: Allowable Costs/Cost Principles - Time and Effort Reporting (Material
Weakness)
Criteria:
The distribution of the salaries and wages to awards must be supported by personnel activity reports or
timesheets. Personnel activity reports or timesheets reflecting the distribution of activity of each
employee must be maintained for all staff members whose compensation is charged, in whole or in
part, to government funded contracts.
The reports must reflect an after-the-fact determination of the actual activity of each employee. Each
report must account for total activity for which employees are compensated and which is required in
fulfillment of their obligations. The report must be signed by the individual employee, or by a
responsible supervisory official having knowledge of the activities performed by the employee, that the
distribution of activity represents a reasonable estimate of the actual work performed by the employee
during the periods covered by the reports. The reports must be prepared at least monthly and must
coincide with one or more pay periods.
Statement of Condition:
For all selected samples, there were no personnel activity reports or timesheets to evidence the
allocation of time to government contracts.
Cause:
Procedures and internal controls associated with actual time and effort charged to government
contracts were not in place.
Effect:
Management did not have sufficient documentation for the allocation of time to government contracts.
Questioned Costs:
$107,080
Perspective Information:
The sampling was a statistically valid sample and the finding applied to all selected samples and
represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-001.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that all time
and effort allocations to federal programs are appropriately documented to comply with applicable cost
principles.
Views of Responsible Officials:
Management is in agreement with the finding. Management has implemented additional policies,
procedures and controls to document the allocation of time and effort
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-004: Allowable Costs/Cost Principles - Time and Effort Reporting (Material
Weakness)
Criteria:
The distribution of the salaries and wages to awards must be supported by personnel activity reports or
timesheets. Personnel activity reports or timesheets reflecting the distribution of activity of each
employee must be maintained for all staff members whose compensation is charged, in whole or in
part, to government funded contracts.
The reports must reflect an after-the-fact determination of the actual activity of each employee. Each
report must account for total activity for which employees are compensated and which is required in
fulfillment of their obligations. The report must be signed by the individual employee, or by a
responsible supervisory official having knowledge of the activities performed by the employee, that the
distribution of activity represents a reasonable estimate of the actual work performed by the employee
during the periods covered by the reports. The reports must be prepared at least monthly and must
coincide with one or more pay periods.
Statement of Condition:
For all selected samples, there were no personnel activity reports or timesheets to evidence the
allocation of time to government contracts.
Cause:
Procedures and internal controls associated with actual time and effort charged to government
contracts were not in place.
Effect:
Management did not have sufficient documentation for the allocation of time to government contracts.
Questioned Costs:
$107,080
Perspective Information:
The sampling was a statistically valid sample and the finding applied to all selected samples and
represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-001.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that all time
and effort allocations to federal programs are appropriately documented to comply with applicable cost
principles.
Views of Responsible Officials:
Management is in agreement with the finding. Management has implemented additional policies,
procedures and controls to document the allocation of time and effort
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of California, Department of Health Care Services (COVID-19)
Program Name (Assistance listing #):
Substance Abuse and Mental Health Services Projects of Regional and National Significance (93.243)
Finding 2023-005: Allowable Costs/Cost Principles - Time and Effort Reporting (Material
Weakness)
Criteria:
The distribution of the salaries and wages to awards must be supported by personnel activity reports or
timesheets. Personnel activity reports or timesheets reflecting the distribution of activity of each
employee must be maintained for all staff members whose compensation is charged, in whole or in
part, to government funded contracts.
The reports must reflect an after-the-fact determination of the actual activity of each employee. Each
report must account for total activity for which employees are compensated and which is required in
fulfillment of their obligations. The report must be signed by the individual employee, or by a
responsible supervisory official having knowledge of the activities performed by the employee, that the
distribution of activity represents a reasonable estimate of the actual work performed by the employee
during the periods covered by the reports. The reports must be prepared at least monthly and must
coincide with one or more pay periods.
Statement of Condition:
For all selected samples, there were no personnel activity reports or timesheets to evidence the
allocation of time to government contracts.
Cause:
Procedures and internal controls associated with actual time and effort charged to government
contracts were not in place.
Effect:
Management did not have sufficient documentation for the allocation of time to government contracts.
Questioned Costs:
$120,484
Perspective Information:
The sampling was a statistically valid sample and the finding applied to all selected samples and
represents a systemic issue.
Identification of Repeat Finding:
No
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that all time
and effort allocations to federal programs are appropriately documented to comply with applicable cost
principles.
Views of Responsible Officials:
Management is in agreement with the finding. Management has implemented additional policies,
procedures and controls to document the allocation of time and effort.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Criteria:
Funding requests for cost reimbursement contracts must be based on actual costs incurred prior to
reimbursement request. For funding requests made in advance of related expenditures, requests must
be in amounts that minimize the time between cash receipt and when the funds are spent. Review of
funding requests must be performed by an employee with knowledge of the government contract and
of the funding needs of the federal program.
Statement of Condition:
For all selected sampled contracts under the advance payment method, there was no evidence of review
and approval of the funding requests submitted.
Cause:
Procedures and internal controls associated with the preparation of funding requests were not
adequately documented.
Effect:
Management did not have sufficient documentation for the funding requests submitted for government
contract.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-003.
Recommendation:
We recommend that management implement policies, controls and procedures to evidence review and
approval of all funding requests from government contracts to comply with applicable cash
management requirements.
Views of Responsible Officials:
Management is in agreement with the finding. Management is in the process of implementing
additional policies, procedures and controls over the preparation, review and approval of funding
requests submitted for government contracts.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Criteria:
Funding requests for cost reimbursement contracts must be based on actual costs incurred prior to
reimbursement request. For funding requests made in advance of related expenditures, requests must
be in amounts that minimize the time between cash receipt and when the funds are spent. Review of
funding requests must be performed by an employee with knowledge of the government contract and
of the funding needs of the federal program.
Statement of Condition:
For all selected sampled contracts under the advance payment method, there was no evidence of review
and approval of the funding requests submitted.
Cause:
Procedures and internal controls associated with the preparation of funding requests were not
adequately documented.
Effect:
Management did not have sufficient documentation for the funding requests submitted for government
contract.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-003.
Recommendation:
We recommend that management implement policies, controls and procedures to evidence review and
approval of all funding requests from government contracts to comply with applicable cash
management requirements.
Views of Responsible Officials:
Management is in agreement with the finding. Management is in the process of implementing
additional policies, procedures and controls over the preparation, review and approval of funding
requests submitted for government contracts.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Criteria:
Funding requests for cost reimbursement contracts must be based on actual costs incurred prior to
reimbursement request. For funding requests made in advance of related expenditures, requests must
be in amounts that minimize the time between cash receipt and when the funds are spent. Review of
funding requests must be performed by an employee with knowledge of the government contract and
of the funding needs of the federal program.
Statement of Condition:
For all selected sampled contracts under the advance payment method, there was no evidence of review
and approval of the funding requests submitted.
Cause:
Procedures and internal controls associated with the preparation of funding requests were not
adequately documented.
Effect:
Management did not have sufficient documentation for the funding requests submitted for government
contract.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-003.
Recommendation:
We recommend that management implement policies, controls and procedures to evidence review and
approval of all funding requests from government contracts to comply with applicable cash
management requirements.
Views of Responsible Officials:
Management is in agreement with the finding. Management is in the process of implementing
additional policies, procedures and controls over the preparation, review and approval of funding
requests submitted for government contracts.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Criteria:
Funding requests for cost reimbursement contracts must be based on actual costs incurred prior to
reimbursement request. For funding requests made in advance of related expenditures, requests must
be in amounts that minimize the time between cash receipt and when the funds are spent. Review of
funding requests must be performed by an employee with knowledge of the government contract and
of the funding needs of the federal program.
Statement of Condition:
For all selected sampled contracts under the advance payment method, there was no evidence of review
and approval of the funding requests submitted.
Cause:
Procedures and internal controls associated with the preparation of funding requests were not
adequately documented.
Effect:
Management did not have sufficient documentation for the funding requests submitted for government
contract.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-003.
Recommendation:
We recommend that management implement policies, controls and procedures to evidence review and
approval of all funding requests from government contracts to comply with applicable cash
management requirements.
Views of Responsible Officials:
Management is in agreement with the finding. Management is in the process of implementing
additional policies, procedures and controls over the preparation, review and approval of funding
requests submitted for government contracts.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Criteria:
Funding requests for cost reimbursement contracts must be based on actual costs incurred prior to
reimbursement request. For funding requests made in advance of related expenditures, requests must
be in amounts that minimize the time between cash receipt and when the funds are spent. Review of
funding requests must be performed by an employee with knowledge of the government contract and
of the funding needs of the federal program.
Statement of Condition:
For all selected sampled contracts under the advance payment method, there was no evidence of review
and approval of the funding requests submitted.
Cause:
Procedures and internal controls associated with the preparation of funding requests were not
adequately documented.
Effect:
Management did not have sufficient documentation for the funding requests submitted for government
contract.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-003.
Recommendation:
We recommend that management implement policies, controls and procedures to evidence review and
approval of all funding requests from government contracts to comply with applicable cash
management requirements.
Views of Responsible Officials:
Management is in agreement with the finding. Management is in the process of implementing
additional policies, procedures and controls over the preparation, review and approval of funding
requests submitted for government contracts.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Criteria:
Funding requests for cost reimbursement contracts must be based on actual costs incurred prior to
reimbursement request. For funding requests made in advance of related expenditures, requests must
be in amounts that minimize the time between cash receipt and when the funds are spent. Review of
funding requests must be performed by an employee with knowledge of the government contract and
of the funding needs of the federal program.
Statement of Condition:
For all selected sampled contracts under the advance payment method, there was no evidence of review
and approval of the funding requests submitted.
Cause:
Procedures and internal controls associated with the preparation of funding requests were not
adequately documented.
Effect:
Management did not have sufficient documentation for the funding requests submitted for government
contract.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-003.
Recommendation:
We recommend that management implement policies, controls and procedures to evidence review and
approval of all funding requests from government contracts to comply with applicable cash
management requirements.
Views of Responsible Officials:
Management is in agreement with the finding. Management is in the process of implementing
additional policies, procedures and controls over the preparation, review and approval of funding
requests submitted for government contracts.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Criteria:
Funding requests for cost reimbursement contracts must be based on actual costs incurred prior to
reimbursement request. For funding requests made in advance of related expenditures, requests must
be in amounts that minimize the time between cash receipt and when the funds are spent. Review of
funding requests must be performed by an employee with knowledge of the government contract and
of the funding needs of the federal program.
Statement of Condition:
For all selected sampled contracts under the advance payment method, there was no evidence of review
and approval of the funding requests submitted.
Cause:
Procedures and internal controls associated with the preparation of funding requests were not
adequately documented.
Effect:
Management did not have sufficient documentation for the funding requests submitted for government
contract.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-003.
Recommendation:
We recommend that management implement policies, controls and procedures to evidence review and
approval of all funding requests from government contracts to comply with applicable cash
management requirements.
Views of Responsible Officials:
Management is in agreement with the finding. Management is in the process of implementing
additional policies, procedures and controls over the preparation, review and approval of funding
requests submitted for government contracts.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of California, Department of Health Care Services (COVID-19)
Program Name (Assistance listing #):
Substance Abuse and Mental Health Services Projects of Regional and National Significance (93.243)
Finding 2023-007: Cash Requisitions (Material Weakness)
Criteria:
Funding requests for cost reimbursement contracts must be based on actual costs incurred prior to
reimbursement request. For funding requests made in advance of related expenditures, requests must
be in amounts that minimize the time between cash receipt and when the funds are spent. Review of
funding requests must be performed by an employee with knowledge of the government contract and
of the funding needs of the federal program.
Statement of Condition:
For one out of our seven sample selections, the funding request was made without actual costs incurred
prior to the reimbursement request.
Cause:
Procedures and internal controls associated with the preparation of funding requests were not
adequately documented.
Effect:
Management did not have sufficient documentation for the funding requests submitted for government
contract.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
No
Recommendation:
We recommend that management implement policies, controls and procedures to evidence review and
approval of all funding requests from government contracts to comply with applicable cash
management requirements.
Views of Responsible Officials:
Management is in agreement with the finding. Management is in the process of implementing
additional policies, procedures and controls over the preparation, review and approval of funding
requests submitted for government contracts.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-008: Cash Disbursements (Significant Deficiency)
Criteria:
Expenses that are charged and allocated to government contracts must include evidence of review and
approval by a responsible supervisory official having knowledge of the purpose of the expenditures.
Statement of Condition:
For 38 of our 60 samples, review and approval by a supervisory official for expense reimbursements
was not performed.
Cause:
Procedures and internal controls associated with the review and approval of expenditures were not
adequately documented.
Effect:
Management did not have sufficient documentation of approval for expenditures allocated to
government contracts.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-004.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that there is
appropriate segregation of duties over the review and approval of expenditures charged to federal
programs.
Views of Responsible Officials:
Management is in agreement with the finding. Management will enhance the policies, procedures and
controls in place over the cash disbursement process to ensure appropriate segregation of duties over
approvals are in place.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-008: Cash Disbursements (Significant Deficiency)
Criteria:
Expenses that are charged and allocated to government contracts must include evidence of review and
approval by a responsible supervisory official having knowledge of the purpose of the expenditures.
Statement of Condition:
For 38 of our 60 samples, review and approval by a supervisory official for expense reimbursements
was not performed.
Cause:
Procedures and internal controls associated with the review and approval of expenditures were not
adequately documented.
Effect:
Management did not have sufficient documentation of approval for expenditures allocated to
government contracts.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-004.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that there is
appropriate segregation of duties over the review and approval of expenditures charged to federal
programs.
Views of Responsible Officials:
Management is in agreement with the finding. Management will enhance the policies, procedures and
controls in place over the cash disbursement process to ensure appropriate segregation of duties over
approvals are in place.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-008: Cash Disbursements (Significant Deficiency)
Criteria:
Expenses that are charged and allocated to government contracts must include evidence of review and
approval by a responsible supervisory official having knowledge of the purpose of the expenditures.
Statement of Condition:
For 38 of our 60 samples, review and approval by a supervisory official for expense reimbursements
was not performed.
Cause:
Procedures and internal controls associated with the review and approval of expenditures were not
adequately documented.
Effect:
Management did not have sufficient documentation of approval for expenditures allocated to
government contracts.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-004.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that there is
appropriate segregation of duties over the review and approval of expenditures charged to federal
programs.
Views of Responsible Officials:
Management is in agreement with the finding. Management will enhance the policies, procedures and
controls in place over the cash disbursement process to ensure appropriate segregation of duties over
approvals are in place.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-008: Cash Disbursements (Significant Deficiency)
Criteria:
Expenses that are charged and allocated to government contracts must include evidence of review and
approval by a responsible supervisory official having knowledge of the purpose of the expenditures.
Statement of Condition:
For 38 of our 60 samples, review and approval by a supervisory official for expense reimbursements
was not performed.
Cause:
Procedures and internal controls associated with the review and approval of expenditures were not
adequately documented.
Effect:
Management did not have sufficient documentation of approval for expenditures allocated to
government contracts.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-004.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that there is
appropriate segregation of duties over the review and approval of expenditures charged to federal
programs.
Views of Responsible Officials:
Management is in agreement with the finding. Management will enhance the policies, procedures and
controls in place over the cash disbursement process to ensure appropriate segregation of duties over
approvals are in place.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-008: Cash Disbursements (Significant Deficiency)
Criteria:
Expenses that are charged and allocated to government contracts must include evidence of review and
approval by a responsible supervisory official having knowledge of the purpose of the expenditures.
Statement of Condition:
For 38 of our 60 samples, review and approval by a supervisory official for expense reimbursements
was not performed.
Cause:
Procedures and internal controls associated with the review and approval of expenditures were not
adequately documented.
Effect:
Management did not have sufficient documentation of approval for expenditures allocated to
government contracts.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-004.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that there is
appropriate segregation of duties over the review and approval of expenditures charged to federal
programs.
Views of Responsible Officials:
Management is in agreement with the finding. Management will enhance the policies, procedures and
controls in place over the cash disbursement process to ensure appropriate segregation of duties over
approvals are in place.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-008: Cash Disbursements (Significant Deficiency)
Criteria:
Expenses that are charged and allocated to government contracts must include evidence of review and
approval by a responsible supervisory official having knowledge of the purpose of the expenditures.
Statement of Condition:
For 38 of our 60 samples, review and approval by a supervisory official for expense reimbursements
was not performed.
Cause:
Procedures and internal controls associated with the review and approval of expenditures were not
adequately documented.
Effect:
Management did not have sufficient documentation of approval for expenditures allocated to
government contracts.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-004.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that there is
appropriate segregation of duties over the review and approval of expenditures charged to federal
programs.
Views of Responsible Officials:
Management is in agreement with the finding. Management will enhance the policies, procedures and
controls in place over the cash disbursement process to ensure appropriate segregation of duties over
approvals are in place.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-008: Cash Disbursements (Significant Deficiency)
Criteria:
Expenses that are charged and allocated to government contracts must include evidence of review and
approval by a responsible supervisory official having knowledge of the purpose of the expenditures.
Statement of Condition:
For 38 of our 60 samples, review and approval by a supervisory official for expense reimbursements
was not performed.
Cause:
Procedures and internal controls associated with the review and approval of expenditures were not
adequately documented.
Effect:
Management did not have sufficient documentation of approval for expenditures allocated to
government contracts.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-004.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that there is
appropriate segregation of duties over the review and approval of expenditures charged to federal
programs.
Views of Responsible Officials:
Management is in agreement with the finding. Management will enhance the policies, procedures and
controls in place over the cash disbursement process to ensure appropriate segregation of duties over
approvals are in place.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of California, Department of Health Care Services (COVID-19)
Program Name (Assistance listing #):
Substance Abuse and Mental Health Services Projects of Regional and National Significance (93.243)
Finding 2023-009: Cash Disbursements (Significant Deficiency)
Criteria:
Expenses that are charged and allocated to government contracts must include evidence of review and
approval by a responsible supervisory official having knowledge of the purpose of the expenditures.
Statement of Condition:
For 39 of our 60 samples, review and approval by a supervisory official for expense reimbursements
was not performed.
Cause:
Procedures and internal controls associated with the review and approval of expenditures were not
adequately documented.
Effect:
Management did not have sufficient documentation of approval for expenditures allocated to
government contracts.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
No
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that there is
appropriate segregation of duties over the review and approval of expenditures charged to federal
programs.
Views of Responsible Officials:
Management is in agreement with the finding. Management will enhance the policies, procedures and
controls in place over the cash disbursement process to ensure appropriate segregation of duties over
approvals are in place.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-004: Allowable Costs/Cost Principles - Time and Effort Reporting (Material
Weakness)
Criteria:
The distribution of the salaries and wages to awards must be supported by personnel activity reports or
timesheets. Personnel activity reports or timesheets reflecting the distribution of activity of each
employee must be maintained for all staff members whose compensation is charged, in whole or in
part, to government funded contracts.
The reports must reflect an after-the-fact determination of the actual activity of each employee. Each
report must account for total activity for which employees are compensated and which is required in
fulfillment of their obligations. The report must be signed by the individual employee, or by a
responsible supervisory official having knowledge of the activities performed by the employee, that the
distribution of activity represents a reasonable estimate of the actual work performed by the employee
during the periods covered by the reports. The reports must be prepared at least monthly and must
coincide with one or more pay periods.
Statement of Condition:
For all selected samples, there were no personnel activity reports or timesheets to evidence the
allocation of time to government contracts.
Cause:
Procedures and internal controls associated with actual time and effort charged to government
contracts were not in place.
Effect:
Management did not have sufficient documentation for the allocation of time to government contracts.
Questioned Costs:
$107,080
Perspective Information:
The sampling was a statistically valid sample and the finding applied to all selected samples and
represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-001.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that all time
and effort allocations to federal programs are appropriately documented to comply with applicable cost
principles.
Views of Responsible Officials:
Management is in agreement with the finding. Management has implemented additional policies,
procedures and controls to document the allocation of time and effort
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-004: Allowable Costs/Cost Principles - Time and Effort Reporting (Material
Weakness)
Criteria:
The distribution of the salaries and wages to awards must be supported by personnel activity reports or
timesheets. Personnel activity reports or timesheets reflecting the distribution of activity of each
employee must be maintained for all staff members whose compensation is charged, in whole or in
part, to government funded contracts.
The reports must reflect an after-the-fact determination of the actual activity of each employee. Each
report must account for total activity for which employees are compensated and which is required in
fulfillment of their obligations. The report must be signed by the individual employee, or by a
responsible supervisory official having knowledge of the activities performed by the employee, that the
distribution of activity represents a reasonable estimate of the actual work performed by the employee
during the periods covered by the reports. The reports must be prepared at least monthly and must
coincide with one or more pay periods.
Statement of Condition:
For all selected samples, there were no personnel activity reports or timesheets to evidence the
allocation of time to government contracts.
Cause:
Procedures and internal controls associated with actual time and effort charged to government
contracts were not in place.
Effect:
Management did not have sufficient documentation for the allocation of time to government contracts.
Questioned Costs:
$107,080
Perspective Information:
The sampling was a statistically valid sample and the finding applied to all selected samples and
represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-001.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that all time
and effort allocations to federal programs are appropriately documented to comply with applicable cost
principles.
Views of Responsible Officials:
Management is in agreement with the finding. Management has implemented additional policies,
procedures and controls to document the allocation of time and effort
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-004: Allowable Costs/Cost Principles - Time and Effort Reporting (Material
Weakness)
Criteria:
The distribution of the salaries and wages to awards must be supported by personnel activity reports or
timesheets. Personnel activity reports or timesheets reflecting the distribution of activity of each
employee must be maintained for all staff members whose compensation is charged, in whole or in
part, to government funded contracts.
The reports must reflect an after-the-fact determination of the actual activity of each employee. Each
report must account for total activity for which employees are compensated and which is required in
fulfillment of their obligations. The report must be signed by the individual employee, or by a
responsible supervisory official having knowledge of the activities performed by the employee, that the
distribution of activity represents a reasonable estimate of the actual work performed by the employee
during the periods covered by the reports. The reports must be prepared at least monthly and must
coincide with one or more pay periods.
Statement of Condition:
For all selected samples, there were no personnel activity reports or timesheets to evidence the
allocation of time to government contracts.
Cause:
Procedures and internal controls associated with actual time and effort charged to government
contracts were not in place.
Effect:
Management did not have sufficient documentation for the allocation of time to government contracts.
Questioned Costs:
$107,080
Perspective Information:
The sampling was a statistically valid sample and the finding applied to all selected samples and
represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-001.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that all time
and effort allocations to federal programs are appropriately documented to comply with applicable cost
principles.
Views of Responsible Officials:
Management is in agreement with the finding. Management has implemented additional policies,
procedures and controls to document the allocation of time and effort
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-004: Allowable Costs/Cost Principles - Time and Effort Reporting (Material
Weakness)
Criteria:
The distribution of the salaries and wages to awards must be supported by personnel activity reports or
timesheets. Personnel activity reports or timesheets reflecting the distribution of activity of each
employee must be maintained for all staff members whose compensation is charged, in whole or in
part, to government funded contracts.
The reports must reflect an after-the-fact determination of the actual activity of each employee. Each
report must account for total activity for which employees are compensated and which is required in
fulfillment of their obligations. The report must be signed by the individual employee, or by a
responsible supervisory official having knowledge of the activities performed by the employee, that the
distribution of activity represents a reasonable estimate of the actual work performed by the employee
during the periods covered by the reports. The reports must be prepared at least monthly and must
coincide with one or more pay periods.
Statement of Condition:
For all selected samples, there were no personnel activity reports or timesheets to evidence the
allocation of time to government contracts.
Cause:
Procedures and internal controls associated with actual time and effort charged to government
contracts were not in place.
Effect:
Management did not have sufficient documentation for the allocation of time to government contracts.
Questioned Costs:
$107,080
Perspective Information:
The sampling was a statistically valid sample and the finding applied to all selected samples and
represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-001.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that all time
and effort allocations to federal programs are appropriately documented to comply with applicable cost
principles.
Views of Responsible Officials:
Management is in agreement with the finding. Management has implemented additional policies,
procedures and controls to document the allocation of time and effort
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-004: Allowable Costs/Cost Principles - Time and Effort Reporting (Material
Weakness)
Criteria:
The distribution of the salaries and wages to awards must be supported by personnel activity reports or
timesheets. Personnel activity reports or timesheets reflecting the distribution of activity of each
employee must be maintained for all staff members whose compensation is charged, in whole or in
part, to government funded contracts.
The reports must reflect an after-the-fact determination of the actual activity of each employee. Each
report must account for total activity for which employees are compensated and which is required in
fulfillment of their obligations. The report must be signed by the individual employee, or by a
responsible supervisory official having knowledge of the activities performed by the employee, that the
distribution of activity represents a reasonable estimate of the actual work performed by the employee
during the periods covered by the reports. The reports must be prepared at least monthly and must
coincide with one or more pay periods.
Statement of Condition:
For all selected samples, there were no personnel activity reports or timesheets to evidence the
allocation of time to government contracts.
Cause:
Procedures and internal controls associated with actual time and effort charged to government
contracts were not in place.
Effect:
Management did not have sufficient documentation for the allocation of time to government contracts.
Questioned Costs:
$107,080
Perspective Information:
The sampling was a statistically valid sample and the finding applied to all selected samples and
represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-001.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that all time
and effort allocations to federal programs are appropriately documented to comply with applicable cost
principles.
Views of Responsible Officials:
Management is in agreement with the finding. Management has implemented additional policies,
procedures and controls to document the allocation of time and effort
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-004: Allowable Costs/Cost Principles - Time and Effort Reporting (Material
Weakness)
Criteria:
The distribution of the salaries and wages to awards must be supported by personnel activity reports or
timesheets. Personnel activity reports or timesheets reflecting the distribution of activity of each
employee must be maintained for all staff members whose compensation is charged, in whole or in
part, to government funded contracts.
The reports must reflect an after-the-fact determination of the actual activity of each employee. Each
report must account for total activity for which employees are compensated and which is required in
fulfillment of their obligations. The report must be signed by the individual employee, or by a
responsible supervisory official having knowledge of the activities performed by the employee, that the
distribution of activity represents a reasonable estimate of the actual work performed by the employee
during the periods covered by the reports. The reports must be prepared at least monthly and must
coincide with one or more pay periods.
Statement of Condition:
For all selected samples, there were no personnel activity reports or timesheets to evidence the
allocation of time to government contracts.
Cause:
Procedures and internal controls associated with actual time and effort charged to government
contracts were not in place.
Effect:
Management did not have sufficient documentation for the allocation of time to government contracts.
Questioned Costs:
$107,080
Perspective Information:
The sampling was a statistically valid sample and the finding applied to all selected samples and
represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-001.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that all time
and effort allocations to federal programs are appropriately documented to comply with applicable cost
principles.
Views of Responsible Officials:
Management is in agreement with the finding. Management has implemented additional policies,
procedures and controls to document the allocation of time and effort
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-004: Allowable Costs/Cost Principles - Time and Effort Reporting (Material
Weakness)
Criteria:
The distribution of the salaries and wages to awards must be supported by personnel activity reports or
timesheets. Personnel activity reports or timesheets reflecting the distribution of activity of each
employee must be maintained for all staff members whose compensation is charged, in whole or in
part, to government funded contracts.
The reports must reflect an after-the-fact determination of the actual activity of each employee. Each
report must account for total activity for which employees are compensated and which is required in
fulfillment of their obligations. The report must be signed by the individual employee, or by a
responsible supervisory official having knowledge of the activities performed by the employee, that the
distribution of activity represents a reasonable estimate of the actual work performed by the employee
during the periods covered by the reports. The reports must be prepared at least monthly and must
coincide with one or more pay periods.
Statement of Condition:
For all selected samples, there were no personnel activity reports or timesheets to evidence the
allocation of time to government contracts.
Cause:
Procedures and internal controls associated with actual time and effort charged to government
contracts were not in place.
Effect:
Management did not have sufficient documentation for the allocation of time to government contracts.
Questioned Costs:
$107,080
Perspective Information:
The sampling was a statistically valid sample and the finding applied to all selected samples and
represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-001.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that all time
and effort allocations to federal programs are appropriately documented to comply with applicable cost
principles.
Views of Responsible Officials:
Management is in agreement with the finding. Management has implemented additional policies,
procedures and controls to document the allocation of time and effort
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of California, Department of Health Care Services (COVID-19)
Program Name (Assistance listing #):
Substance Abuse and Mental Health Services Projects of Regional and National Significance (93.243)
Finding 2023-005: Allowable Costs/Cost Principles - Time and Effort Reporting (Material
Weakness)
Criteria:
The distribution of the salaries and wages to awards must be supported by personnel activity reports or
timesheets. Personnel activity reports or timesheets reflecting the distribution of activity of each
employee must be maintained for all staff members whose compensation is charged, in whole or in
part, to government funded contracts.
The reports must reflect an after-the-fact determination of the actual activity of each employee. Each
report must account for total activity for which employees are compensated and which is required in
fulfillment of their obligations. The report must be signed by the individual employee, or by a
responsible supervisory official having knowledge of the activities performed by the employee, that the
distribution of activity represents a reasonable estimate of the actual work performed by the employee
during the periods covered by the reports. The reports must be prepared at least monthly and must
coincide with one or more pay periods.
Statement of Condition:
For all selected samples, there were no personnel activity reports or timesheets to evidence the
allocation of time to government contracts.
Cause:
Procedures and internal controls associated with actual time and effort charged to government
contracts were not in place.
Effect:
Management did not have sufficient documentation for the allocation of time to government contracts.
Questioned Costs:
$120,484
Perspective Information:
The sampling was a statistically valid sample and the finding applied to all selected samples and
represents a systemic issue.
Identification of Repeat Finding:
No
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that all time
and effort allocations to federal programs are appropriately documented to comply with applicable cost
principles.
Views of Responsible Officials:
Management is in agreement with the finding. Management has implemented additional policies,
procedures and controls to document the allocation of time and effort.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Criteria:
Funding requests for cost reimbursement contracts must be based on actual costs incurred prior to
reimbursement request. For funding requests made in advance of related expenditures, requests must
be in amounts that minimize the time between cash receipt and when the funds are spent. Review of
funding requests must be performed by an employee with knowledge of the government contract and
of the funding needs of the federal program.
Statement of Condition:
For all selected sampled contracts under the advance payment method, there was no evidence of review
and approval of the funding requests submitted.
Cause:
Procedures and internal controls associated with the preparation of funding requests were not
adequately documented.
Effect:
Management did not have sufficient documentation for the funding requests submitted for government
contract.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-003.
Recommendation:
We recommend that management implement policies, controls and procedures to evidence review and
approval of all funding requests from government contracts to comply with applicable cash
management requirements.
Views of Responsible Officials:
Management is in agreement with the finding. Management is in the process of implementing
additional policies, procedures and controls over the preparation, review and approval of funding
requests submitted for government contracts.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Criteria:
Funding requests for cost reimbursement contracts must be based on actual costs incurred prior to
reimbursement request. For funding requests made in advance of related expenditures, requests must
be in amounts that minimize the time between cash receipt and when the funds are spent. Review of
funding requests must be performed by an employee with knowledge of the government contract and
of the funding needs of the federal program.
Statement of Condition:
For all selected sampled contracts under the advance payment method, there was no evidence of review
and approval of the funding requests submitted.
Cause:
Procedures and internal controls associated with the preparation of funding requests were not
adequately documented.
Effect:
Management did not have sufficient documentation for the funding requests submitted for government
contract.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-003.
Recommendation:
We recommend that management implement policies, controls and procedures to evidence review and
approval of all funding requests from government contracts to comply with applicable cash
management requirements.
Views of Responsible Officials:
Management is in agreement with the finding. Management is in the process of implementing
additional policies, procedures and controls over the preparation, review and approval of funding
requests submitted for government contracts.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Criteria:
Funding requests for cost reimbursement contracts must be based on actual costs incurred prior to
reimbursement request. For funding requests made in advance of related expenditures, requests must
be in amounts that minimize the time between cash receipt and when the funds are spent. Review of
funding requests must be performed by an employee with knowledge of the government contract and
of the funding needs of the federal program.
Statement of Condition:
For all selected sampled contracts under the advance payment method, there was no evidence of review
and approval of the funding requests submitted.
Cause:
Procedures and internal controls associated with the preparation of funding requests were not
adequately documented.
Effect:
Management did not have sufficient documentation for the funding requests submitted for government
contract.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-003.
Recommendation:
We recommend that management implement policies, controls and procedures to evidence review and
approval of all funding requests from government contracts to comply with applicable cash
management requirements.
Views of Responsible Officials:
Management is in agreement with the finding. Management is in the process of implementing
additional policies, procedures and controls over the preparation, review and approval of funding
requests submitted for government contracts.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Criteria:
Funding requests for cost reimbursement contracts must be based on actual costs incurred prior to
reimbursement request. For funding requests made in advance of related expenditures, requests must
be in amounts that minimize the time between cash receipt and when the funds are spent. Review of
funding requests must be performed by an employee with knowledge of the government contract and
of the funding needs of the federal program.
Statement of Condition:
For all selected sampled contracts under the advance payment method, there was no evidence of review
and approval of the funding requests submitted.
Cause:
Procedures and internal controls associated with the preparation of funding requests were not
adequately documented.
Effect:
Management did not have sufficient documentation for the funding requests submitted for government
contract.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-003.
Recommendation:
We recommend that management implement policies, controls and procedures to evidence review and
approval of all funding requests from government contracts to comply with applicable cash
management requirements.
Views of Responsible Officials:
Management is in agreement with the finding. Management is in the process of implementing
additional policies, procedures and controls over the preparation, review and approval of funding
requests submitted for government contracts.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Criteria:
Funding requests for cost reimbursement contracts must be based on actual costs incurred prior to
reimbursement request. For funding requests made in advance of related expenditures, requests must
be in amounts that minimize the time between cash receipt and when the funds are spent. Review of
funding requests must be performed by an employee with knowledge of the government contract and
of the funding needs of the federal program.
Statement of Condition:
For all selected sampled contracts under the advance payment method, there was no evidence of review
and approval of the funding requests submitted.
Cause:
Procedures and internal controls associated with the preparation of funding requests were not
adequately documented.
Effect:
Management did not have sufficient documentation for the funding requests submitted for government
contract.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-003.
Recommendation:
We recommend that management implement policies, controls and procedures to evidence review and
approval of all funding requests from government contracts to comply with applicable cash
management requirements.
Views of Responsible Officials:
Management is in agreement with the finding. Management is in the process of implementing
additional policies, procedures and controls over the preparation, review and approval of funding
requests submitted for government contracts.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Criteria:
Funding requests for cost reimbursement contracts must be based on actual costs incurred prior to
reimbursement request. For funding requests made in advance of related expenditures, requests must
be in amounts that minimize the time between cash receipt and when the funds are spent. Review of
funding requests must be performed by an employee with knowledge of the government contract and
of the funding needs of the federal program.
Statement of Condition:
For all selected sampled contracts under the advance payment method, there was no evidence of review
and approval of the funding requests submitted.
Cause:
Procedures and internal controls associated with the preparation of funding requests were not
adequately documented.
Effect:
Management did not have sufficient documentation for the funding requests submitted for government
contract.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-003.
Recommendation:
We recommend that management implement policies, controls and procedures to evidence review and
approval of all funding requests from government contracts to comply with applicable cash
management requirements.
Views of Responsible Officials:
Management is in agreement with the finding. Management is in the process of implementing
additional policies, procedures and controls over the preparation, review and approval of funding
requests submitted for government contracts.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Criteria:
Funding requests for cost reimbursement contracts must be based on actual costs incurred prior to
reimbursement request. For funding requests made in advance of related expenditures, requests must
be in amounts that minimize the time between cash receipt and when the funds are spent. Review of
funding requests must be performed by an employee with knowledge of the government contract and
of the funding needs of the federal program.
Statement of Condition:
For all selected sampled contracts under the advance payment method, there was no evidence of review
and approval of the funding requests submitted.
Cause:
Procedures and internal controls associated with the preparation of funding requests were not
adequately documented.
Effect:
Management did not have sufficient documentation for the funding requests submitted for government
contract.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-003.
Recommendation:
We recommend that management implement policies, controls and procedures to evidence review and
approval of all funding requests from government contracts to comply with applicable cash
management requirements.
Views of Responsible Officials:
Management is in agreement with the finding. Management is in the process of implementing
additional policies, procedures and controls over the preparation, review and approval of funding
requests submitted for government contracts.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of California, Department of Health Care Services (COVID-19)
Program Name (Assistance listing #):
Substance Abuse and Mental Health Services Projects of Regional and National Significance (93.243)
Finding 2023-007: Cash Requisitions (Material Weakness)
Criteria:
Funding requests for cost reimbursement contracts must be based on actual costs incurred prior to
reimbursement request. For funding requests made in advance of related expenditures, requests must
be in amounts that minimize the time between cash receipt and when the funds are spent. Review of
funding requests must be performed by an employee with knowledge of the government contract and
of the funding needs of the federal program.
Statement of Condition:
For one out of our seven sample selections, the funding request was made without actual costs incurred
prior to the reimbursement request.
Cause:
Procedures and internal controls associated with the preparation of funding requests were not
adequately documented.
Effect:
Management did not have sufficient documentation for the funding requests submitted for government
contract.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
No
Recommendation:
We recommend that management implement policies, controls and procedures to evidence review and
approval of all funding requests from government contracts to comply with applicable cash
management requirements.
Views of Responsible Officials:
Management is in agreement with the finding. Management is in the process of implementing
additional policies, procedures and controls over the preparation, review and approval of funding
requests submitted for government contracts.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-008: Cash Disbursements (Significant Deficiency)
Criteria:
Expenses that are charged and allocated to government contracts must include evidence of review and
approval by a responsible supervisory official having knowledge of the purpose of the expenditures.
Statement of Condition:
For 38 of our 60 samples, review and approval by a supervisory official for expense reimbursements
was not performed.
Cause:
Procedures and internal controls associated with the review and approval of expenditures were not
adequately documented.
Effect:
Management did not have sufficient documentation of approval for expenditures allocated to
government contracts.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-004.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that there is
appropriate segregation of duties over the review and approval of expenditures charged to federal
programs.
Views of Responsible Officials:
Management is in agreement with the finding. Management will enhance the policies, procedures and
controls in place over the cash disbursement process to ensure appropriate segregation of duties over
approvals are in place.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-008: Cash Disbursements (Significant Deficiency)
Criteria:
Expenses that are charged and allocated to government contracts must include evidence of review and
approval by a responsible supervisory official having knowledge of the purpose of the expenditures.
Statement of Condition:
For 38 of our 60 samples, review and approval by a supervisory official for expense reimbursements
was not performed.
Cause:
Procedures and internal controls associated with the review and approval of expenditures were not
adequately documented.
Effect:
Management did not have sufficient documentation of approval for expenditures allocated to
government contracts.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-004.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that there is
appropriate segregation of duties over the review and approval of expenditures charged to federal
programs.
Views of Responsible Officials:
Management is in agreement with the finding. Management will enhance the policies, procedures and
controls in place over the cash disbursement process to ensure appropriate segregation of duties over
approvals are in place.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-008: Cash Disbursements (Significant Deficiency)
Criteria:
Expenses that are charged and allocated to government contracts must include evidence of review and
approval by a responsible supervisory official having knowledge of the purpose of the expenditures.
Statement of Condition:
For 38 of our 60 samples, review and approval by a supervisory official for expense reimbursements
was not performed.
Cause:
Procedures and internal controls associated with the review and approval of expenditures were not
adequately documented.
Effect:
Management did not have sufficient documentation of approval for expenditures allocated to
government contracts.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-004.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that there is
appropriate segregation of duties over the review and approval of expenditures charged to federal
programs.
Views of Responsible Officials:
Management is in agreement with the finding. Management will enhance the policies, procedures and
controls in place over the cash disbursement process to ensure appropriate segregation of duties over
approvals are in place.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-008: Cash Disbursements (Significant Deficiency)
Criteria:
Expenses that are charged and allocated to government contracts must include evidence of review and
approval by a responsible supervisory official having knowledge of the purpose of the expenditures.
Statement of Condition:
For 38 of our 60 samples, review and approval by a supervisory official for expense reimbursements
was not performed.
Cause:
Procedures and internal controls associated with the review and approval of expenditures were not
adequately documented.
Effect:
Management did not have sufficient documentation of approval for expenditures allocated to
government contracts.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-004.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that there is
appropriate segregation of duties over the review and approval of expenditures charged to federal
programs.
Views of Responsible Officials:
Management is in agreement with the finding. Management will enhance the policies, procedures and
controls in place over the cash disbursement process to ensure appropriate segregation of duties over
approvals are in place.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-008: Cash Disbursements (Significant Deficiency)
Criteria:
Expenses that are charged and allocated to government contracts must include evidence of review and
approval by a responsible supervisory official having knowledge of the purpose of the expenditures.
Statement of Condition:
For 38 of our 60 samples, review and approval by a supervisory official for expense reimbursements
was not performed.
Cause:
Procedures and internal controls associated with the review and approval of expenditures were not
adequately documented.
Effect:
Management did not have sufficient documentation of approval for expenditures allocated to
government contracts.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-004.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that there is
appropriate segregation of duties over the review and approval of expenditures charged to federal
programs.
Views of Responsible Officials:
Management is in agreement with the finding. Management will enhance the policies, procedures and
controls in place over the cash disbursement process to ensure appropriate segregation of duties over
approvals are in place.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-008: Cash Disbursements (Significant Deficiency)
Criteria:
Expenses that are charged and allocated to government contracts must include evidence of review and
approval by a responsible supervisory official having knowledge of the purpose of the expenditures.
Statement of Condition:
For 38 of our 60 samples, review and approval by a supervisory official for expense reimbursements
was not performed.
Cause:
Procedures and internal controls associated with the review and approval of expenditures were not
adequately documented.
Effect:
Management did not have sufficient documentation of approval for expenditures allocated to
government contracts.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-004.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that there is
appropriate segregation of duties over the review and approval of expenditures charged to federal
programs.
Views of Responsible Officials:
Management is in agreement with the finding. Management will enhance the policies, procedures and
controls in place over the cash disbursement process to ensure appropriate segregation of duties over
approvals are in place.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-008: Cash Disbursements (Significant Deficiency)
Criteria:
Expenses that are charged and allocated to government contracts must include evidence of review and
approval by a responsible supervisory official having knowledge of the purpose of the expenditures.
Statement of Condition:
For 38 of our 60 samples, review and approval by a supervisory official for expense reimbursements
was not performed.
Cause:
Procedures and internal controls associated with the review and approval of expenditures were not
adequately documented.
Effect:
Management did not have sufficient documentation of approval for expenditures allocated to
government contracts.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-004.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that there is
appropriate segregation of duties over the review and approval of expenditures charged to federal
programs.
Views of Responsible Officials:
Management is in agreement with the finding. Management will enhance the policies, procedures and
controls in place over the cash disbursement process to ensure appropriate segregation of duties over
approvals are in place.
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of California, Department of Health Care Services (COVID-19)
Program Name (Assistance listing #):
Substance Abuse and Mental Health Services Projects of Regional and National Significance (93.243)
Finding 2023-009: Cash Disbursements (Significant Deficiency)
Criteria:
Expenses that are charged and allocated to government contracts must include evidence of review and
approval by a responsible supervisory official having knowledge of the purpose of the expenditures.
Statement of Condition:
For 39 of our 60 samples, review and approval by a supervisory official for expense reimbursements
was not performed.
Cause:
Procedures and internal controls associated with the review and approval of expenditures were not
adequately documented.
Effect:
Management did not have sufficient documentation of approval for expenditures allocated to
government contracts.
Questioned Costs:
None
Perspective Information:
The sampling was a statistically valid sample and represents a systemic issue.
Identification of Repeat Finding:
No
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that there is
appropriate segregation of duties over the review and approval of expenditures charged to federal
programs.
Views of Responsible Officials:
Management is in agreement with the finding. Management will enhance the policies, procedures and
controls in place over the cash disbursement process to ensure appropriate segregation of duties over
approvals are in place.