Finding 2024-001
Department of Health and Human Services
2024-001 – The Organization should strengthen controls in payroll and other expenses
Noncompliance (Significant Deficiency)
Program: Assistance Listing 93.958 and 93.959 - Block Grant for Community Mental
Health and Prevention and Treatment of Substance Abuse
Conditions: Allegations of falsification of hours worked on a timecard resulting in overpayment
and unauthorized use of a company credit card.
Criteria: In accordance with the Uniform Guidance, allowable costs must be necessary and
reasonable for the performance of the federal award and be allocable thereto under the principles
in 2 CFR Part 200, Subpart E.
Cause: Due to an internal control weakness, the transactions were processed.
Recommendation: In order to prevent future occurrences of the noncompliance, policies should
be developed, and procedures implemented.
Responsible Officials: The acting Executive Director reported incident immediately and
enforced quality improvement program in order to ensure that fraud, waste, and abuse do not
occur.
Known Cost Per Grantor
$22,480
Finding 2024-002
Department of Health and Human Services
2024-002 – The Organization should strengthen controls in billings, clinical records,
allowable costs, and employee educational qualification compliance Noncompliance
(Material Weakness)
Program: Assistance Listing 93.958 and 93.959 - Block Grant for Community Mental
Health and Prevention and Treatment of Substance Abuse
Conditions: Allegations of inappropriate billing, educational qualification issues, inappropriate
mileage reimbursement billing, missing clinical records to support services billed, and
questioning of pay rates and/or increases.
Criteria: In accordance with the Uniform Guidance and Grant Agency, provider is to abide by
administrative and contractual requirements under the principles in 2 CFR Part 200, Subpart E.
Cause: Due to an internal control weakness and management turnover, the transactions were
processed.
Recommendation: In order to prevent future occurrences of the noncompliance, policies should
be developed, and procedures implemented.
Responsible Officials: The acting Executive Director reported incident immediately and
enforced quality improvement program in order to ensure that fraud, waste, and abuse do not
occur. However, several allegations are being investigated and are currently being responded, by
the Organization.
Known Cost Per Grantor
$941,324
Finding 2024-001
Department of Health and Human Services
2024-001 – The Organization should strengthen controls in payroll and other expenses
Noncompliance (Significant Deficiency)
Program: Assistance Listing 93.958 and 93.959 - Block Grant for Community Mental
Health and Prevention and Treatment of Substance Abuse
Conditions: Allegations of falsification of hours worked on a timecard resulting in overpayment
and unauthorized use of a company credit card.
Criteria: In accordance with the Uniform Guidance, allowable costs must be necessary and
reasonable for the performance of the federal award and be allocable thereto under the principles
in 2 CFR Part 200, Subpart E.
Cause: Due to an internal control weakness, the transactions were processed.
Recommendation: In order to prevent future occurrences of the noncompliance, policies should
be developed, and procedures implemented.
Responsible Officials: The acting Executive Director reported incident immediately and
enforced quality improvement program in order to ensure that fraud, waste, and abuse do not
occur.
Known Cost Per Grantor
$22,480
Finding 2024-002
Department of Health and Human Services
2024-002 – The Organization should strengthen controls in billings, clinical records,
allowable costs, and employee educational qualification compliance Noncompliance
(Material Weakness)
Program: Assistance Listing 93.958 and 93.959 - Block Grant for Community Mental
Health and Prevention and Treatment of Substance Abuse
Conditions: Allegations of inappropriate billing, educational qualification issues, inappropriate
mileage reimbursement billing, missing clinical records to support services billed, and
questioning of pay rates and/or increases.
Criteria: In accordance with the Uniform Guidance and Grant Agency, provider is to abide by
administrative and contractual requirements under the principles in 2 CFR Part 200, Subpart E.
Cause: Due to an internal control weakness and management turnover, the transactions were
processed.
Recommendation: In order to prevent future occurrences of the noncompliance, policies should
be developed, and procedures implemented.
Responsible Officials: The acting Executive Director reported incident immediately and
enforced quality improvement program in order to ensure that fraud, waste, and abuse do not
occur. However, several allegations are being investigated and are currently being responded, by
the Organization.
Known Cost Per Grantor
$941,324