Audit 32851

FY End
2022-06-30
Total Expended
$881,641
Findings
2
Programs
5
Year: 2022 Accepted: 2022-12-18

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
33470 2022-001 Significant Deficiency - L
609912 2022-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.959 Block Grants for Prevention and Treatment of Substance Abuse $471,740 Yes 0
93.498 Provider Relief Fund $302,353 Yes 1
14.218 Community Development Block Grants/entitlement Grants $94,950 - 0
93.958 Block Grants for Community Mental Health Services $12,200 - 0
93.788 Opioid Str $398 - 0

Contacts

Name Title Type
E2SVF3TPFEA6 Pam Lung Auditee
3304547917 Jordan Miller Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior year. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal grant activity of Child and Adolescent Behavioral Health, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.The financial statements reflect revenue recognized from the Provider Relief Fund (PRF) of $65,638 and $302,353 for the years ended June 30, 2022 and 2021, respectively. Included in the revenue recognized during the year ended June 30, 2022, is $65,638 received during PRF Period 4. The Schedule includes PRF of $302,353 that were received in PRF Periods 2 and 3 in accordance with the requirements of the compliance supplement for assistance listing number 93.498.

Finding Details

Finding 2022-001 Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Provider Relief Fund Assistance Listing Number: 93.498 Federal Award Identification Number and Year: N/A - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Compliance Requirement: Reporting Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: Management submitted the report required by the Department of Health and Human Services (HHS) using actual expenditures versus using the intended lost revenue calculation. Questioned costs: None Context: The Organization's internal controls over compliance related to reporting were not effective. Management erroneously submitted the report using expenditures rather than using the intended lost revenue calculation. Cause: Management oversight Effect: The Organization's internal controls around reporting were not effective causing management to erroneously report to HHS. Repeat Finding: N/A Recommendation: We recommend that management request that HHS re-open the portal so as to resubmit based on the lost revenue calculation versus based on the original reporting method which used expenditures as a basis. If unable to re-open the portal, verify for next submission to HHS, if applicable, that the organization submits report based on the lost revenue calculation. We also recommend that a review take place over this reporting submission.Views of responsible officials and planned corrective actions: Management agreed with the above finding and attempted to re-open the HHS portal to accurately report based on the lost revenue calculation, but given the timing of the request, were denied by HHS. The Organization?s lost revenue calculation exceeds the Provider Relief Funds received. The error in the report was due to management?s misunderstanding of the instructions that expenditures needed to be reported, when no expenditures at all should have been reported in order for the lost revenue calculation portion of the portal to populate.
Finding 2022-001 Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Provider Relief Fund Assistance Listing Number: 93.498 Federal Award Identification Number and Year: N/A - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Compliance Requirement: Reporting Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: Management submitted the report required by the Department of Health and Human Services (HHS) using actual expenditures versus using the intended lost revenue calculation. Questioned costs: None Context: The Organization's internal controls over compliance related to reporting were not effective. Management erroneously submitted the report using expenditures rather than using the intended lost revenue calculation. Cause: Management oversight Effect: The Organization's internal controls around reporting were not effective causing management to erroneously report to HHS. Repeat Finding: N/A Recommendation: We recommend that management request that HHS re-open the portal so as to resubmit based on the lost revenue calculation versus based on the original reporting method which used expenditures as a basis. If unable to re-open the portal, verify for next submission to HHS, if applicable, that the organization submits report based on the lost revenue calculation. We also recommend that a review take place over this reporting submission.Views of responsible officials and planned corrective actions: Management agreed with the above finding and attempted to re-open the HHS portal to accurately report based on the lost revenue calculation, but given the timing of the request, were denied by HHS. The Organization?s lost revenue calculation exceeds the Provider Relief Funds received. The error in the report was due to management?s misunderstanding of the instructions that expenditures needed to be reported, when no expenditures at all should have been reported in order for the lost revenue calculation portion of the portal to populate.