Audit 324583

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Reporting Criteria or specific requirement Internal controls should be in place to ensure that reports are filed accurately and by applicable due dates. Condition During the year under audit, there was turnover in personnel that led to responsible reporting parties to not receive reporting deadline notifications, as well as a staffing shortfall that required responsible reporting parties to be inundated with additional responsibilities, causing reporting deadlines to be missed. Context The IPS MHBG ARPA Grant had 3 reports filed after reporting deadlines and the CMHC Grant had 1 report filed after reporting deadlines. Effect Reports were filed after applicable deadlines. Cause Staffing shortages and turnover caused reporting deadlines to be missed. Recommendation Employees with grant reporting responsibilities need to be aware of reporting deadlines and implement processes and procedures to ensure deadlines are identified and communicated to all parties involved. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Reporting Criteria or specific requirement Internal controls should be in place to ensure that reports are filed accurately and by applicable due dates. Condition During the year under audit, there was turnover in personnel that led to responsible reporting parties to not receive reporting deadline notifications, as well as a staffing shortfall that required responsible reporting parties to be inundated with additional responsibilities, causing reporting deadlines to be missed. Context The IPS MHBG ARPA Grant had 3 reports filed after reporting deadlines and the CMHC Grant had 1 report filed after reporting deadlines. Effect Reports were filed after applicable deadlines. Cause Staffing shortages and turnover caused reporting deadlines to be missed. Recommendation Employees with grant reporting responsibilities need to be aware of reporting deadlines and implement processes and procedures to ensure deadlines are identified and communicated to all parties involved. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Reporting Criteria or specific requirement Internal controls should be in place to ensure that reports are filed accurately and by applicable due dates. Condition During the year under audit, there was turnover in personnel that led to responsible reporting parties to not receive reporting deadline notifications, as well as a staffing shortfall that required responsible reporting parties to be inundated with additional responsibilities, causing reporting deadlines to be missed. Context The IPS MHBG ARPA Grant had 3 reports filed after reporting deadlines and the CMHC Grant had 1 report filed after reporting deadlines. Effect Reports were filed after applicable deadlines. Cause Staffing shortages and turnover caused reporting deadlines to be missed. Recommendation Employees with grant reporting responsibilities need to be aware of reporting deadlines and implement processes and procedures to ensure deadlines are identified and communicated to all parties involved. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Reporting Criteria or specific requirement Internal controls should be in place to ensure that reports are filed accurately and by applicable due dates. Condition During the year under audit, there was turnover in personnel that led to responsible reporting parties to not receive reporting deadline notifications, as well as a staffing shortfall that required responsible reporting parties to be inundated with additional responsibilities, causing reporting deadlines to be missed. Context The IPS MHBG ARPA Grant had 3 reports filed after reporting deadlines and the CMHC Grant had 1 report filed after reporting deadlines. Effect Reports were filed after applicable deadlines. Cause Staffing shortages and turnover caused reporting deadlines to be missed. Recommendation Employees with grant reporting responsibilities need to be aware of reporting deadlines and implement processes and procedures to ensure deadlines are identified and communicated to all parties involved. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Reporting Criteria or specific requirement Internal controls should be in place to ensure that reports are filed accurately and by applicable due dates. Condition During the year under audit, there was turnover in personnel that led to responsible reporting parties to not receive reporting deadline notifications, as well as a staffing shortfall that required responsible reporting parties to be inundated with additional responsibilities, causing reporting deadlines to be missed. Context The IPS MHBG ARPA Grant had 3 reports filed after reporting deadlines and the CMHC Grant had 1 report filed after reporting deadlines. Effect Reports were filed after applicable deadlines. Cause Staffing shortages and turnover caused reporting deadlines to be missed. Recommendation Employees with grant reporting responsibilities need to be aware of reporting deadlines and implement processes and procedures to ensure deadlines are identified and communicated to all parties involved. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that indirect cost rates are applied to the modified total direct cost base. Condition During the year under audit, the indirect cost rate applied to the modified total direct cost base was more than the de minimis indirect cost rate elected. Context An additional $677.40 in indirect costs were applied to the IPS MHBG ARPA Grant for the year ended December 31, 2023. Effect Indirect costs rates were incorrectly charged to the IPS MHBG ARPA Grant for the period under audit. Cause Since the total indirect costs as a percentage of total grant expenses was under the 10% de minimis indirect cost rate elected, grant management thought indirect costs charged were in compliance with indirect cost rate rules. Management was not aware that the percentage must be 10% or less of the modified total direct cost base rather than total grant expenses. Recommendation The elected 10% de minimis indirect cost rate should be applied consistently across all federal grant awards to the modified total direct cost base for each federal grant award. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that indirect cost rates are applied to the modified total direct cost base. Condition During the year under audit, the indirect cost rate applied to the modified total direct cost base was more than the de minimis indirect cost rate elected. Context An additional $677.40 in indirect costs were applied to the IPS MHBG ARPA Grant for the year ended December 31, 2023. Effect Indirect costs rates were incorrectly charged to the IPS MHBG ARPA Grant for the period under audit. Cause Since the total indirect costs as a percentage of total grant expenses was under the 10% de minimis indirect cost rate elected, grant management thought indirect costs charged were in compliance with indirect cost rate rules. Management was not aware that the percentage must be 10% or less of the modified total direct cost base rather than total grant expenses. Recommendation The elected 10% de minimis indirect cost rate should be applied consistently across all federal grant awards to the modified total direct cost base for each federal grant award. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that indirect cost rates are applied to the modified total direct cost base. Condition During the year under audit, the indirect cost rate applied to the modified total direct cost base was more than the de minimis indirect cost rate elected. Context An additional $677.40 in indirect costs were applied to the IPS MHBG ARPA Grant for the year ended December 31, 2023. Effect Indirect costs rates were incorrectly charged to the IPS MHBG ARPA Grant for the period under audit. Cause Since the total indirect costs as a percentage of total grant expenses was under the 10% de minimis indirect cost rate elected, grant management thought indirect costs charged were in compliance with indirect cost rate rules. Management was not aware that the percentage must be 10% or less of the modified total direct cost base rather than total grant expenses. Recommendation The elected 10% de minimis indirect cost rate should be applied consistently across all federal grant awards to the modified total direct cost base for each federal grant award. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that indirect cost rates are applied to the modified total direct cost base. Condition During the year under audit, the indirect cost rate applied to the modified total direct cost base was more than the de minimis indirect cost rate elected. Context An additional $677.40 in indirect costs were applied to the IPS MHBG ARPA Grant for the year ended December 31, 2023. Effect Indirect costs rates were incorrectly charged to the IPS MHBG ARPA Grant for the period under audit. Cause Since the total indirect costs as a percentage of total grant expenses was under the 10% de minimis indirect cost rate elected, grant management thought indirect costs charged were in compliance with indirect cost rate rules. Management was not aware that the percentage must be 10% or less of the modified total direct cost base rather than total grant expenses. Recommendation The elected 10% de minimis indirect cost rate should be applied consistently across all federal grant awards to the modified total direct cost base for each federal grant award. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that indirect cost rates are applied to the modified total direct cost base. Condition During the year under audit, the indirect cost rate applied to the modified total direct cost base was more than the de minimis indirect cost rate elected. Context An additional $677.40 in indirect costs were applied to the IPS MHBG ARPA Grant for the year ended December 31, 2023. Effect Indirect costs rates were incorrectly charged to the IPS MHBG ARPA Grant for the period under audit. Cause Since the total indirect costs as a percentage of total grant expenses was under the 10% de minimis indirect cost rate elected, grant management thought indirect costs charged were in compliance with indirect cost rate rules. Management was not aware that the percentage must be 10% or less of the modified total direct cost base rather than total grant expenses. Recommendation The elected 10% de minimis indirect cost rate should be applied consistently across all federal grant awards to the modified total direct cost base for each federal grant award. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services and 93.696 – Certified Community Behavioral Health Clinic Expansion Grants Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that costs are correctly charged as to account, amount, and period, and to ensure that costs are adequately documented and supported. Condition During the year under audit, multiple instances were identified were amounts booked via journal entries were either recorded incorrectly or were not made at all, as well as two months where a grant was overcharged for eligible expenses. Context During testing, one expenditure charged to the CCBHC Expansion Grant was identified as an unallowable expenditure. However, prior to this testing, the client had identified overcharges to the CMHC Grant, CCBHC Expansion Grant and IPS MHBG ARPA Grant as a result of internal reconciliation processes for audit preparedness. The IPS MHBG ARPA Grant had $50.00 in over-charges during the year ended December 31, 2023. The CMHC Grant had $45.22 in over-charges during the year ended December 31, 2023. An amount of $3,197.40 in likely questioned costs were identified for 93.958 – Block Grants for Community Mental Health Services. The CCBHC Expansion Grant had $390.38 in over-charges during the year ended December 31, 2023. An amount of $2,184.68 in likely questioned costs were identified for 93.696 – Certified Community Behavioral Health Clinic Expansion Grants. Effect Expenditures were incorrectly charged to the programs for the period under audit. Cause Human error occurred during the process of manually creating journal entries to book expenditures to the program, as well as human error in identifying instances where journal entries were needed to accurately reflect eligible program expenses but those journal entries were not made. Recommendation We recommend that supporting documentation when preparing journal entries associated with federal programs are reviewed carefully and that grant reconciliations of eligible expenses to those recorded in the accounting software occur monthly. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services and 93.696 – Certified Community Behavioral Health Clinic Expansion Grants Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that costs are correctly charged as to account, amount, and period, and to ensure that costs are adequately documented and supported. Condition During the year under audit, multiple instances were identified were amounts booked via journal entries were either recorded incorrectly or were not made at all, as well as two months where a grant was overcharged for eligible expenses. Context During testing, one expenditure charged to the CCBHC Expansion Grant was identified as an unallowable expenditure. However, prior to this testing, the client had identified overcharges to the CMHC Grant, CCBHC Expansion Grant and IPS MHBG ARPA Grant as a result of internal reconciliation processes for audit preparedness. The IPS MHBG ARPA Grant had $50.00 in over-charges during the year ended December 31, 2023. The CMHC Grant had $45.22 in over-charges during the year ended December 31, 2023. An amount of $3,197.40 in likely questioned costs were identified for 93.958 – Block Grants for Community Mental Health Services. The CCBHC Expansion Grant had $390.38 in over-charges during the year ended December 31, 2023. An amount of $2,184.68 in likely questioned costs were identified for 93.696 – Certified Community Behavioral Health Clinic Expansion Grants. Effect Expenditures were incorrectly charged to the programs for the period under audit. Cause Human error occurred during the process of manually creating journal entries to book expenditures to the program, as well as human error in identifying instances where journal entries were needed to accurately reflect eligible program expenses but those journal entries were not made. Recommendation We recommend that supporting documentation when preparing journal entries associated with federal programs are reviewed carefully and that grant reconciliations of eligible expenses to those recorded in the accounting software occur monthly. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services and 93.696 – Certified Community Behavioral Health Clinic Expansion Grants Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that costs are correctly charged as to account, amount, and period, and to ensure that costs are adequately documented and supported. Condition During the year under audit, multiple instances were identified were amounts booked via journal entries were either recorded incorrectly or were not made at all, as well as two months where a grant was overcharged for eligible expenses. Context During testing, one expenditure charged to the CCBHC Expansion Grant was identified as an unallowable expenditure. However, prior to this testing, the client had identified overcharges to the CMHC Grant, CCBHC Expansion Grant and IPS MHBG ARPA Grant as a result of internal reconciliation processes for audit preparedness. The IPS MHBG ARPA Grant had $50.00 in over-charges during the year ended December 31, 2023. The CMHC Grant had $45.22 in over-charges during the year ended December 31, 2023. An amount of $3,197.40 in likely questioned costs were identified for 93.958 – Block Grants for Community Mental Health Services. The CCBHC Expansion Grant had $390.38 in over-charges during the year ended December 31, 2023. An amount of $2,184.68 in likely questioned costs were identified for 93.696 – Certified Community Behavioral Health Clinic Expansion Grants. Effect Expenditures were incorrectly charged to the programs for the period under audit. Cause Human error occurred during the process of manually creating journal entries to book expenditures to the program, as well as human error in identifying instances where journal entries were needed to accurately reflect eligible program expenses but those journal entries were not made. Recommendation We recommend that supporting documentation when preparing journal entries associated with federal programs are reviewed carefully and that grant reconciliations of eligible expenses to those recorded in the accounting software occur monthly. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services and 93.696 – Certified Community Behavioral Health Clinic Expansion Grants Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that costs are correctly charged as to account, amount, and period, and to ensure that costs are adequately documented and supported. Condition During the year under audit, multiple instances were identified were amounts booked via journal entries were either recorded incorrectly or were not made at all, as well as two months where a grant was overcharged for eligible expenses. Context During testing, one expenditure charged to the CCBHC Expansion Grant was identified as an unallowable expenditure. However, prior to this testing, the client had identified overcharges to the CMHC Grant, CCBHC Expansion Grant and IPS MHBG ARPA Grant as a result of internal reconciliation processes for audit preparedness. The IPS MHBG ARPA Grant had $50.00 in over-charges during the year ended December 31, 2023. The CMHC Grant had $45.22 in over-charges during the year ended December 31, 2023. An amount of $3,197.40 in likely questioned costs were identified for 93.958 – Block Grants for Community Mental Health Services. The CCBHC Expansion Grant had $390.38 in over-charges during the year ended December 31, 2023. An amount of $2,184.68 in likely questioned costs were identified for 93.696 – Certified Community Behavioral Health Clinic Expansion Grants. Effect Expenditures were incorrectly charged to the programs for the period under audit. Cause Human error occurred during the process of manually creating journal entries to book expenditures to the program, as well as human error in identifying instances where journal entries were needed to accurately reflect eligible program expenses but those journal entries were not made. Recommendation We recommend that supporting documentation when preparing journal entries associated with federal programs are reviewed carefully and that grant reconciliations of eligible expenses to those recorded in the accounting software occur monthly. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services and 93.696 – Certified Community Behavioral Health Clinic Expansion Grants Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that costs are correctly charged as to account, amount, and period, and to ensure that costs are adequately documented and supported. Condition During the year under audit, multiple instances were identified were amounts booked via journal entries were either recorded incorrectly or were not made at all, as well as two months where a grant was overcharged for eligible expenses. Context During testing, one expenditure charged to the CCBHC Expansion Grant was identified as an unallowable expenditure. However, prior to this testing, the client had identified overcharges to the CMHC Grant, CCBHC Expansion Grant and IPS MHBG ARPA Grant as a result of internal reconciliation processes for audit preparedness. The IPS MHBG ARPA Grant had $50.00 in over-charges during the year ended December 31, 2023. The CMHC Grant had $45.22 in over-charges during the year ended December 31, 2023. An amount of $3,197.40 in likely questioned costs were identified for 93.958 – Block Grants for Community Mental Health Services. The CCBHC Expansion Grant had $390.38 in over-charges during the year ended December 31, 2023. An amount of $2,184.68 in likely questioned costs were identified for 93.696 – Certified Community Behavioral Health Clinic Expansion Grants. Effect Expenditures were incorrectly charged to the programs for the period under audit. Cause Human error occurred during the process of manually creating journal entries to book expenditures to the program, as well as human error in identifying instances where journal entries were needed to accurately reflect eligible program expenses but those journal entries were not made. Recommendation We recommend that supporting documentation when preparing journal entries associated with federal programs are reviewed carefully and that grant reconciliations of eligible expenses to those recorded in the accounting software occur monthly. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services and 93.696 – Certified Community Behavioral Health Clinic Expansion Grants Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that costs are correctly charged as to account, amount, and period, and to ensure that costs are adequately documented and supported. Condition During the year under audit, multiple instances were identified were amounts booked via journal entries were either recorded incorrectly or were not made at all, as well as two months where a grant was overcharged for eligible expenses. Context During testing, one expenditure charged to the CCBHC Expansion Grant was identified as an unallowable expenditure. However, prior to this testing, the client had identified overcharges to the CMHC Grant, CCBHC Expansion Grant and IPS MHBG ARPA Grant as a result of internal reconciliation processes for audit preparedness. The IPS MHBG ARPA Grant had $50.00 in over-charges during the year ended December 31, 2023. The CMHC Grant had $45.22 in over-charges during the year ended December 31, 2023. An amount of $3,197.40 in likely questioned costs were identified for 93.958 – Block Grants for Community Mental Health Services. The CCBHC Expansion Grant had $390.38 in over-charges during the year ended December 31, 2023. An amount of $2,184.68 in likely questioned costs were identified for 93.696 – Certified Community Behavioral Health Clinic Expansion Grants. Effect Expenditures were incorrectly charged to the programs for the period under audit. Cause Human error occurred during the process of manually creating journal entries to book expenditures to the program, as well as human error in identifying instances where journal entries were needed to accurately reflect eligible program expenses but those journal entries were not made. Recommendation We recommend that supporting documentation when preparing journal entries associated with federal programs are reviewed carefully and that grant reconciliations of eligible expenses to those recorded in the accounting software occur monthly. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Reporting Criteria or specific requirement Internal controls should be in place to ensure that reports are filed accurately and by applicable due dates. Condition During the year under audit, there was turnover in personnel that led to responsible reporting parties to not receive reporting deadline notifications, as well as a staffing shortfall that required responsible reporting parties to be inundated with additional responsibilities, causing reporting deadlines to be missed. Context The IPS MHBG ARPA Grant had 3 reports filed after reporting deadlines and the CMHC Grant had 1 report filed after reporting deadlines. Effect Reports were filed after applicable deadlines. Cause Staffing shortages and turnover caused reporting deadlines to be missed. Recommendation Employees with grant reporting responsibilities need to be aware of reporting deadlines and implement processes and procedures to ensure deadlines are identified and communicated to all parties involved. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Reporting Criteria or specific requirement Internal controls should be in place to ensure that reports are filed accurately and by applicable due dates. Condition During the year under audit, there was turnover in personnel that led to responsible reporting parties to not receive reporting deadline notifications, as well as a staffing shortfall that required responsible reporting parties to be inundated with additional responsibilities, causing reporting deadlines to be missed. Context The IPS MHBG ARPA Grant had 3 reports filed after reporting deadlines and the CMHC Grant had 1 report filed after reporting deadlines. Effect Reports were filed after applicable deadlines. Cause Staffing shortages and turnover caused reporting deadlines to be missed. Recommendation Employees with grant reporting responsibilities need to be aware of reporting deadlines and implement processes and procedures to ensure deadlines are identified and communicated to all parties involved. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Reporting Criteria or specific requirement Internal controls should be in place to ensure that reports are filed accurately and by applicable due dates. Condition During the year under audit, there was turnover in personnel that led to responsible reporting parties to not receive reporting deadline notifications, as well as a staffing shortfall that required responsible reporting parties to be inundated with additional responsibilities, causing reporting deadlines to be missed. Context The IPS MHBG ARPA Grant had 3 reports filed after reporting deadlines and the CMHC Grant had 1 report filed after reporting deadlines. Effect Reports were filed after applicable deadlines. Cause Staffing shortages and turnover caused reporting deadlines to be missed. Recommendation Employees with grant reporting responsibilities need to be aware of reporting deadlines and implement processes and procedures to ensure deadlines are identified and communicated to all parties involved. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Reporting Criteria or specific requirement Internal controls should be in place to ensure that reports are filed accurately and by applicable due dates. Condition During the year under audit, there was turnover in personnel that led to responsible reporting parties to not receive reporting deadline notifications, as well as a staffing shortfall that required responsible reporting parties to be inundated with additional responsibilities, causing reporting deadlines to be missed. Context The IPS MHBG ARPA Grant had 3 reports filed after reporting deadlines and the CMHC Grant had 1 report filed after reporting deadlines. Effect Reports were filed after applicable deadlines. Cause Staffing shortages and turnover caused reporting deadlines to be missed. Recommendation Employees with grant reporting responsibilities need to be aware of reporting deadlines and implement processes and procedures to ensure deadlines are identified and communicated to all parties involved. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Reporting Criteria or specific requirement Internal controls should be in place to ensure that reports are filed accurately and by applicable due dates. Condition During the year under audit, there was turnover in personnel that led to responsible reporting parties to not receive reporting deadline notifications, as well as a staffing shortfall that required responsible reporting parties to be inundated with additional responsibilities, causing reporting deadlines to be missed. Context The IPS MHBG ARPA Grant had 3 reports filed after reporting deadlines and the CMHC Grant had 1 report filed after reporting deadlines. Effect Reports were filed after applicable deadlines. Cause Staffing shortages and turnover caused reporting deadlines to be missed. Recommendation Employees with grant reporting responsibilities need to be aware of reporting deadlines and implement processes and procedures to ensure deadlines are identified and communicated to all parties involved. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that indirect cost rates are applied to the modified total direct cost base. Condition During the year under audit, the indirect cost rate applied to the modified total direct cost base was more than the de minimis indirect cost rate elected. Context An additional $677.40 in indirect costs were applied to the IPS MHBG ARPA Grant for the year ended December 31, 2023. Effect Indirect costs rates were incorrectly charged to the IPS MHBG ARPA Grant for the period under audit. Cause Since the total indirect costs as a percentage of total grant expenses was under the 10% de minimis indirect cost rate elected, grant management thought indirect costs charged were in compliance with indirect cost rate rules. Management was not aware that the percentage must be 10% or less of the modified total direct cost base rather than total grant expenses. Recommendation The elected 10% de minimis indirect cost rate should be applied consistently across all federal grant awards to the modified total direct cost base for each federal grant award. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that indirect cost rates are applied to the modified total direct cost base. Condition During the year under audit, the indirect cost rate applied to the modified total direct cost base was more than the de minimis indirect cost rate elected. Context An additional $677.40 in indirect costs were applied to the IPS MHBG ARPA Grant for the year ended December 31, 2023. Effect Indirect costs rates were incorrectly charged to the IPS MHBG ARPA Grant for the period under audit. Cause Since the total indirect costs as a percentage of total grant expenses was under the 10% de minimis indirect cost rate elected, grant management thought indirect costs charged were in compliance with indirect cost rate rules. Management was not aware that the percentage must be 10% or less of the modified total direct cost base rather than total grant expenses. Recommendation The elected 10% de minimis indirect cost rate should be applied consistently across all federal grant awards to the modified total direct cost base for each federal grant award. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that indirect cost rates are applied to the modified total direct cost base. Condition During the year under audit, the indirect cost rate applied to the modified total direct cost base was more than the de minimis indirect cost rate elected. Context An additional $677.40 in indirect costs were applied to the IPS MHBG ARPA Grant for the year ended December 31, 2023. Effect Indirect costs rates were incorrectly charged to the IPS MHBG ARPA Grant for the period under audit. Cause Since the total indirect costs as a percentage of total grant expenses was under the 10% de minimis indirect cost rate elected, grant management thought indirect costs charged were in compliance with indirect cost rate rules. Management was not aware that the percentage must be 10% or less of the modified total direct cost base rather than total grant expenses. Recommendation The elected 10% de minimis indirect cost rate should be applied consistently across all federal grant awards to the modified total direct cost base for each federal grant award. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that indirect cost rates are applied to the modified total direct cost base. Condition During the year under audit, the indirect cost rate applied to the modified total direct cost base was more than the de minimis indirect cost rate elected. Context An additional $677.40 in indirect costs were applied to the IPS MHBG ARPA Grant for the year ended December 31, 2023. Effect Indirect costs rates were incorrectly charged to the IPS MHBG ARPA Grant for the period under audit. Cause Since the total indirect costs as a percentage of total grant expenses was under the 10% de minimis indirect cost rate elected, grant management thought indirect costs charged were in compliance with indirect cost rate rules. Management was not aware that the percentage must be 10% or less of the modified total direct cost base rather than total grant expenses. Recommendation The elected 10% de minimis indirect cost rate should be applied consistently across all federal grant awards to the modified total direct cost base for each federal grant award. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that indirect cost rates are applied to the modified total direct cost base. Condition During the year under audit, the indirect cost rate applied to the modified total direct cost base was more than the de minimis indirect cost rate elected. Context An additional $677.40 in indirect costs were applied to the IPS MHBG ARPA Grant for the year ended December 31, 2023. Effect Indirect costs rates were incorrectly charged to the IPS MHBG ARPA Grant for the period under audit. Cause Since the total indirect costs as a percentage of total grant expenses was under the 10% de minimis indirect cost rate elected, grant management thought indirect costs charged were in compliance with indirect cost rate rules. Management was not aware that the percentage must be 10% or less of the modified total direct cost base rather than total grant expenses. Recommendation The elected 10% de minimis indirect cost rate should be applied consistently across all federal grant awards to the modified total direct cost base for each federal grant award. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services and 93.696 – Certified Community Behavioral Health Clinic Expansion Grants Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that costs are correctly charged as to account, amount, and period, and to ensure that costs are adequately documented and supported. Condition During the year under audit, multiple instances were identified were amounts booked via journal entries were either recorded incorrectly or were not made at all, as well as two months where a grant was overcharged for eligible expenses. Context During testing, one expenditure charged to the CCBHC Expansion Grant was identified as an unallowable expenditure. However, prior to this testing, the client had identified overcharges to the CMHC Grant, CCBHC Expansion Grant and IPS MHBG ARPA Grant as a result of internal reconciliation processes for audit preparedness. The IPS MHBG ARPA Grant had $50.00 in over-charges during the year ended December 31, 2023. The CMHC Grant had $45.22 in over-charges during the year ended December 31, 2023. An amount of $3,197.40 in likely questioned costs were identified for 93.958 – Block Grants for Community Mental Health Services. The CCBHC Expansion Grant had $390.38 in over-charges during the year ended December 31, 2023. An amount of $2,184.68 in likely questioned costs were identified for 93.696 – Certified Community Behavioral Health Clinic Expansion Grants. Effect Expenditures were incorrectly charged to the programs for the period under audit. Cause Human error occurred during the process of manually creating journal entries to book expenditures to the program, as well as human error in identifying instances where journal entries were needed to accurately reflect eligible program expenses but those journal entries were not made. Recommendation We recommend that supporting documentation when preparing journal entries associated with federal programs are reviewed carefully and that grant reconciliations of eligible expenses to those recorded in the accounting software occur monthly. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services and 93.696 – Certified Community Behavioral Health Clinic Expansion Grants Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that costs are correctly charged as to account, amount, and period, and to ensure that costs are adequately documented and supported. Condition During the year under audit, multiple instances were identified were amounts booked via journal entries were either recorded incorrectly or were not made at all, as well as two months where a grant was overcharged for eligible expenses. Context During testing, one expenditure charged to the CCBHC Expansion Grant was identified as an unallowable expenditure. However, prior to this testing, the client had identified overcharges to the CMHC Grant, CCBHC Expansion Grant and IPS MHBG ARPA Grant as a result of internal reconciliation processes for audit preparedness. The IPS MHBG ARPA Grant had $50.00 in over-charges during the year ended December 31, 2023. The CMHC Grant had $45.22 in over-charges during the year ended December 31, 2023. An amount of $3,197.40 in likely questioned costs were identified for 93.958 – Block Grants for Community Mental Health Services. The CCBHC Expansion Grant had $390.38 in over-charges during the year ended December 31, 2023. An amount of $2,184.68 in likely questioned costs were identified for 93.696 – Certified Community Behavioral Health Clinic Expansion Grants. Effect Expenditures were incorrectly charged to the programs for the period under audit. Cause Human error occurred during the process of manually creating journal entries to book expenditures to the program, as well as human error in identifying instances where journal entries were needed to accurately reflect eligible program expenses but those journal entries were not made. Recommendation We recommend that supporting documentation when preparing journal entries associated with federal programs are reviewed carefully and that grant reconciliations of eligible expenses to those recorded in the accounting software occur monthly. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services and 93.696 – Certified Community Behavioral Health Clinic Expansion Grants Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that costs are correctly charged as to account, amount, and period, and to ensure that costs are adequately documented and supported. Condition During the year under audit, multiple instances were identified were amounts booked via journal entries were either recorded incorrectly or were not made at all, as well as two months where a grant was overcharged for eligible expenses. Context During testing, one expenditure charged to the CCBHC Expansion Grant was identified as an unallowable expenditure. However, prior to this testing, the client had identified overcharges to the CMHC Grant, CCBHC Expansion Grant and IPS MHBG ARPA Grant as a result of internal reconciliation processes for audit preparedness. The IPS MHBG ARPA Grant had $50.00 in over-charges during the year ended December 31, 2023. The CMHC Grant had $45.22 in over-charges during the year ended December 31, 2023. An amount of $3,197.40 in likely questioned costs were identified for 93.958 – Block Grants for Community Mental Health Services. The CCBHC Expansion Grant had $390.38 in over-charges during the year ended December 31, 2023. An amount of $2,184.68 in likely questioned costs were identified for 93.696 – Certified Community Behavioral Health Clinic Expansion Grants. Effect Expenditures were incorrectly charged to the programs for the period under audit. Cause Human error occurred during the process of manually creating journal entries to book expenditures to the program, as well as human error in identifying instances where journal entries were needed to accurately reflect eligible program expenses but those journal entries were not made. Recommendation We recommend that supporting documentation when preparing journal entries associated with federal programs are reviewed carefully and that grant reconciliations of eligible expenses to those recorded in the accounting software occur monthly. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services and 93.696 – Certified Community Behavioral Health Clinic Expansion Grants Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that costs are correctly charged as to account, amount, and period, and to ensure that costs are adequately documented and supported. Condition During the year under audit, multiple instances were identified were amounts booked via journal entries were either recorded incorrectly or were not made at all, as well as two months where a grant was overcharged for eligible expenses. Context During testing, one expenditure charged to the CCBHC Expansion Grant was identified as an unallowable expenditure. However, prior to this testing, the client had identified overcharges to the CMHC Grant, CCBHC Expansion Grant and IPS MHBG ARPA Grant as a result of internal reconciliation processes for audit preparedness. The IPS MHBG ARPA Grant had $50.00 in over-charges during the year ended December 31, 2023. The CMHC Grant had $45.22 in over-charges during the year ended December 31, 2023. An amount of $3,197.40 in likely questioned costs were identified for 93.958 – Block Grants for Community Mental Health Services. The CCBHC Expansion Grant had $390.38 in over-charges during the year ended December 31, 2023. An amount of $2,184.68 in likely questioned costs were identified for 93.696 – Certified Community Behavioral Health Clinic Expansion Grants. Effect Expenditures were incorrectly charged to the programs for the period under audit. Cause Human error occurred during the process of manually creating journal entries to book expenditures to the program, as well as human error in identifying instances where journal entries were needed to accurately reflect eligible program expenses but those journal entries were not made. Recommendation We recommend that supporting documentation when preparing journal entries associated with federal programs are reviewed carefully and that grant reconciliations of eligible expenses to those recorded in the accounting software occur monthly. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services and 93.696 – Certified Community Behavioral Health Clinic Expansion Grants Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that costs are correctly charged as to account, amount, and period, and to ensure that costs are adequately documented and supported. Condition During the year under audit, multiple instances were identified were amounts booked via journal entries were either recorded incorrectly or were not made at all, as well as two months where a grant was overcharged for eligible expenses. Context During testing, one expenditure charged to the CCBHC Expansion Grant was identified as an unallowable expenditure. However, prior to this testing, the client had identified overcharges to the CMHC Grant, CCBHC Expansion Grant and IPS MHBG ARPA Grant as a result of internal reconciliation processes for audit preparedness. The IPS MHBG ARPA Grant had $50.00 in over-charges during the year ended December 31, 2023. The CMHC Grant had $45.22 in over-charges during the year ended December 31, 2023. An amount of $3,197.40 in likely questioned costs were identified for 93.958 – Block Grants for Community Mental Health Services. The CCBHC Expansion Grant had $390.38 in over-charges during the year ended December 31, 2023. An amount of $2,184.68 in likely questioned costs were identified for 93.696 – Certified Community Behavioral Health Clinic Expansion Grants. Effect Expenditures were incorrectly charged to the programs for the period under audit. Cause Human error occurred during the process of manually creating journal entries to book expenditures to the program, as well as human error in identifying instances where journal entries were needed to accurately reflect eligible program expenses but those journal entries were not made. Recommendation We recommend that supporting documentation when preparing journal entries associated with federal programs are reviewed carefully and that grant reconciliations of eligible expenses to those recorded in the accounting software occur monthly. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services and 93.696 – Certified Community Behavioral Health Clinic Expansion Grants Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that costs are correctly charged as to account, amount, and period, and to ensure that costs are adequately documented and supported. Condition During the year under audit, multiple instances were identified were amounts booked via journal entries were either recorded incorrectly or were not made at all, as well as two months where a grant was overcharged for eligible expenses. Context During testing, one expenditure charged to the CCBHC Expansion Grant was identified as an unallowable expenditure. However, prior to this testing, the client had identified overcharges to the CMHC Grant, CCBHC Expansion Grant and IPS MHBG ARPA Grant as a result of internal reconciliation processes for audit preparedness. The IPS MHBG ARPA Grant had $50.00 in over-charges during the year ended December 31, 2023. The CMHC Grant had $45.22 in over-charges during the year ended December 31, 2023. An amount of $3,197.40 in likely questioned costs were identified for 93.958 – Block Grants for Community Mental Health Services. The CCBHC Expansion Grant had $390.38 in over-charges during the year ended December 31, 2023. An amount of $2,184.68 in likely questioned costs were identified for 93.696 – Certified Community Behavioral Health Clinic Expansion Grants. Effect Expenditures were incorrectly charged to the programs for the period under audit. Cause Human error occurred during the process of manually creating journal entries to book expenditures to the program, as well as human error in identifying instances where journal entries were needed to accurately reflect eligible program expenses but those journal entries were not made. Recommendation We recommend that supporting documentation when preparing journal entries associated with federal programs are reviewed carefully and that grant reconciliations of eligible expenses to those recorded in the accounting software occur monthly. Views of responsible officials and planned corrective actions See corrective action plan.