FAC Explorer

Audit 351003

FY End
2024-06-30
Total Expended
$2.19M
Findings
8
Programs
6
Organization: Ontrack Inc. (OR)
Year: 2024 Accepted: 2025-03-31
Auditor: Clark Nuber P S

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
544361 2024-002 Material Weakness - I
544362 2024-002 Material Weakness - I
544363 2024-003 Significant Deficiency - L
544364 2024-003 Significant Deficiency - L
1120803 2024-002 Material Weakness - I
1120804 2024-002 Material Weakness - I
1120805 2024-003 Significant Deficiency - L
1120806 2024-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $744,977 Yes 0
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $458,307 Yes 2
14.235 Supportive Housing Program $210,903 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $83,112 - 0
93.732 Mental and Behavioral Health Education and Training Grants $12,741 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $10,381 - 0

Contacts

Name Title Type
NE4MMRZU5UL5 Mark Bell Auditee
5098995368 Joseph Purvis Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - 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 to reimbursement. The Organization elected to use the 10 percent de minimis indirect cost rate. De Minimis Rate Used: Y Rate Explanation: The Organization elected to use the 10 percent de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of OnTrack, Inc. (the Organization) under programs of the federal government for the year ended June 30, 2024. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, change in net assets, functional expenses, or cash flows of the Organization. The Organization had received federal grant funding from governmental funders which resulted in the placement of restrictions and liens on the deed of trust requiring repayment of the total grant funds awarded should the continuing compliance requirements not be met. Due to the contingent repayment and liens placed upon the property the Organization has considered these loans with continuing compliance requirements for the purpose of the Schedule of Expenditure of Federal Awards. The Organization had the following loan balances outstanding at June 30, 2024:
Title: Note 2 - Summary of Significant Accounting Policies 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 to reimbursement. The Organization elected to use the 10 percent de minimis indirect cost rate. De Minimis Rate Used: Y Rate Explanation: The Organization elected to use the 10 percent de minimis indirect cost rate. 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 to reimbursement. The Organization elected to use the 10 percent de minimis indirect cost rate.

Finding Details

Finding 2024-002
Material noncompliance and material weakness in internal control over compliance with procurement and suspension and debarment procedures meeting the requirements of 2 CFR Part 200. Federal Agency: Department of Health and Human Services Program Title: Substance Abuse and Mental Health Services Projects of Regional and National Significance Assistance Listing Number: 93.732 Award Numbers and Years: All awards Criteria Internal controls requirements contained in Title 2 U.S. Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (the Uniform Guidance) , Subpart D ‐ Post Federal Award Requirements, Section 200.318 through 200.326 Internal Controls, require that a non‐Federal entity use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirement identified in 2 CFR Part 200. Condition/Context The Organization has not enacted a procurement policy which meets the requirements of CFR 200.317 through 200.327. As a result, the Organization could not produce documentation of the history of the procurement, including justification of the procurement method and performance of a suspension and debarment search. The Organizations major program had a single vendor in which the aggregate purchases as part of the contract was greater than the micro-purchase threshold. The Organization determined at the time of procurement that due to the specialized nature of on-site medical professional services being procured that the contract could only be fulfilled by a single source. Cause The Organization did not have internal controls in place to ensure that the Organization’s procurement policy met the requirement of the Uniform Guidance. Effect The Organization entered into agreements to procure goods and services for which no documentation was retained to support the history of the procurement and did not meet the requirement of the Uniform Guidance. Questioned Costs $0 Repeat Finding Not a repeat finding.   Recommendation We recommend the Organization implement policies and procedures for procuring goods and services under federal awards that meet the requirements of the Uniform Guidance. Views of Responsible Individual and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.
Finding 2024-002
Material noncompliance and material weakness in internal control over compliance with procurement and suspension and debarment procedures meeting the requirements of 2 CFR Part 200. Federal Agency: Department of Health and Human Services Program Title: Substance Abuse and Mental Health Services Projects of Regional and National Significance Assistance Listing Number: 93.732 Award Numbers and Years: All awards Criteria Internal controls requirements contained in Title 2 U.S. Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (the Uniform Guidance) , Subpart D ‐ Post Federal Award Requirements, Section 200.318 through 200.326 Internal Controls, require that a non‐Federal entity use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirement identified in 2 CFR Part 200. Condition/Context The Organization has not enacted a procurement policy which meets the requirements of CFR 200.317 through 200.327. As a result, the Organization could not produce documentation of the history of the procurement, including justification of the procurement method and performance of a suspension and debarment search. The Organizations major program had a single vendor in which the aggregate purchases as part of the contract was greater than the micro-purchase threshold. The Organization determined at the time of procurement that due to the specialized nature of on-site medical professional services being procured that the contract could only be fulfilled by a single source. Cause The Organization did not have internal controls in place to ensure that the Organization’s procurement policy met the requirement of the Uniform Guidance. Effect The Organization entered into agreements to procure goods and services for which no documentation was retained to support the history of the procurement and did not meet the requirement of the Uniform Guidance. Questioned Costs $0 Repeat Finding Not a repeat finding.   Recommendation We recommend the Organization implement policies and procedures for procuring goods and services under federal awards that meet the requirements of the Uniform Guidance. Views of Responsible Individual and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.
Finding 2024-003
Significant deficiency in internal controls and noncompliance with the reporting requirements. Federal Agency: Department of Health and Human Services Program Title: Substance Abuse and Mental Health Services Projects of Regional and National Significance Assistance Listing Number: 93.732 Award Numbers and Years: All awards Criteria In accordance with 2 CFR Part 170, recipients of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS as required by appendix A to Part 2 CFR part 170. Condition/Context During reporting compliance testing for the year ended June 30, 2024, for one of one subaward made the Organization did not report the subaward made greater than $30,000 in FSRS. Cause The Organization did not have internal controls in place to ensure that all subawards made greater than $30,000 were included in FSRS. Effect First tier subawards of greater than $30,000 were not reported in FSRS. Questioned Costs Not applicable Repeat Finding Not a repeat finding. Recommendation We recommend the Organization implement policies and procedures for procuring goods and services under federal awards that meet the requirements of the Uniform Guidance. Views of Responsible Individual and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.
Finding 2024-003
Significant deficiency in internal controls and noncompliance with the reporting requirements. Federal Agency: Department of Health and Human Services Program Title: Substance Abuse and Mental Health Services Projects of Regional and National Significance Assistance Listing Number: 93.732 Award Numbers and Years: All awards Criteria In accordance with 2 CFR Part 170, recipients of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS as required by appendix A to Part 2 CFR part 170. Condition/Context During reporting compliance testing for the year ended June 30, 2024, for one of one subaward made the Organization did not report the subaward made greater than $30,000 in FSRS. Cause The Organization did not have internal controls in place to ensure that all subawards made greater than $30,000 were included in FSRS. Effect First tier subawards of greater than $30,000 were not reported in FSRS. Questioned Costs Not applicable Repeat Finding Not a repeat finding. Recommendation We recommend the Organization implement policies and procedures for procuring goods and services under federal awards that meet the requirements of the Uniform Guidance. Views of Responsible Individual and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.
Finding 2024-002
Material noncompliance and material weakness in internal control over compliance with procurement and suspension and debarment procedures meeting the requirements of 2 CFR Part 200. Federal Agency: Department of Health and Human Services Program Title: Substance Abuse and Mental Health Services Projects of Regional and National Significance Assistance Listing Number: 93.732 Award Numbers and Years: All awards Criteria Internal controls requirements contained in Title 2 U.S. Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (the Uniform Guidance) , Subpart D ‐ Post Federal Award Requirements, Section 200.318 through 200.326 Internal Controls, require that a non‐Federal entity use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirement identified in 2 CFR Part 200. Condition/Context The Organization has not enacted a procurement policy which meets the requirements of CFR 200.317 through 200.327. As a result, the Organization could not produce documentation of the history of the procurement, including justification of the procurement method and performance of a suspension and debarment search. The Organizations major program had a single vendor in which the aggregate purchases as part of the contract was greater than the micro-purchase threshold. The Organization determined at the time of procurement that due to the specialized nature of on-site medical professional services being procured that the contract could only be fulfilled by a single source. Cause The Organization did not have internal controls in place to ensure that the Organization’s procurement policy met the requirement of the Uniform Guidance. Effect The Organization entered into agreements to procure goods and services for which no documentation was retained to support the history of the procurement and did not meet the requirement of the Uniform Guidance. Questioned Costs $0 Repeat Finding Not a repeat finding.   Recommendation We recommend the Organization implement policies and procedures for procuring goods and services under federal awards that meet the requirements of the Uniform Guidance. Views of Responsible Individual and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.
Finding 2024-002
Material noncompliance and material weakness in internal control over compliance with procurement and suspension and debarment procedures meeting the requirements of 2 CFR Part 200. Federal Agency: Department of Health and Human Services Program Title: Substance Abuse and Mental Health Services Projects of Regional and National Significance Assistance Listing Number: 93.732 Award Numbers and Years: All awards Criteria Internal controls requirements contained in Title 2 U.S. Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (the Uniform Guidance) , Subpart D ‐ Post Federal Award Requirements, Section 200.318 through 200.326 Internal Controls, require that a non‐Federal entity use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirement identified in 2 CFR Part 200. Condition/Context The Organization has not enacted a procurement policy which meets the requirements of CFR 200.317 through 200.327. As a result, the Organization could not produce documentation of the history of the procurement, including justification of the procurement method and performance of a suspension and debarment search. The Organizations major program had a single vendor in which the aggregate purchases as part of the contract was greater than the micro-purchase threshold. The Organization determined at the time of procurement that due to the specialized nature of on-site medical professional services being procured that the contract could only be fulfilled by a single source. Cause The Organization did not have internal controls in place to ensure that the Organization’s procurement policy met the requirement of the Uniform Guidance. Effect The Organization entered into agreements to procure goods and services for which no documentation was retained to support the history of the procurement and did not meet the requirement of the Uniform Guidance. Questioned Costs $0 Repeat Finding Not a repeat finding.   Recommendation We recommend the Organization implement policies and procedures for procuring goods and services under federal awards that meet the requirements of the Uniform Guidance. Views of Responsible Individual and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.
Finding 2024-003
Significant deficiency in internal controls and noncompliance with the reporting requirements. Federal Agency: Department of Health and Human Services Program Title: Substance Abuse and Mental Health Services Projects of Regional and National Significance Assistance Listing Number: 93.732 Award Numbers and Years: All awards Criteria In accordance with 2 CFR Part 170, recipients of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS as required by appendix A to Part 2 CFR part 170. Condition/Context During reporting compliance testing for the year ended June 30, 2024, for one of one subaward made the Organization did not report the subaward made greater than $30,000 in FSRS. Cause The Organization did not have internal controls in place to ensure that all subawards made greater than $30,000 were included in FSRS. Effect First tier subawards of greater than $30,000 were not reported in FSRS. Questioned Costs Not applicable Repeat Finding Not a repeat finding. Recommendation We recommend the Organization implement policies and procedures for procuring goods and services under federal awards that meet the requirements of the Uniform Guidance. Views of Responsible Individual and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.
Finding 2024-003
Significant deficiency in internal controls and noncompliance with the reporting requirements. Federal Agency: Department of Health and Human Services Program Title: Substance Abuse and Mental Health Services Projects of Regional and National Significance Assistance Listing Number: 93.732 Award Numbers and Years: All awards Criteria In accordance with 2 CFR Part 170, recipients of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS as required by appendix A to Part 2 CFR part 170. Condition/Context During reporting compliance testing for the year ended June 30, 2024, for one of one subaward made the Organization did not report the subaward made greater than $30,000 in FSRS. Cause The Organization did not have internal controls in place to ensure that all subawards made greater than $30,000 were included in FSRS. Effect First tier subawards of greater than $30,000 were not reported in FSRS. Questioned Costs Not applicable Repeat Finding Not a repeat finding. Recommendation We recommend the Organization implement policies and procedures for procuring goods and services under federal awards that meet the requirements of the Uniform Guidance. Views of Responsible Individual and Corrective Action Plan Management agrees with the finding and has provided the accompanying corrective action plan.