Audit 354388

Criteria: Under the Uniform Guidance, specifically 2 CFR 200.430, charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition: Documentation for exempt employees' hours was unavailable or incomplete. Cause: Management lacks policy over tracking time on the timesheet for the exempt employees. Since exempt employees are compensated monthly, it is not required for the exempt employees to record time in their timesheet. Effect or potential effect: During our testing over payroll, we noted $3,875 of exempt employee salary expense that was not supported with accurate time records. This amount projects to a possible total error of $91,107. Questioned cost: $91,107 Recommendation: We recommend that management to regularly review the actual hours that exempt employees worked to determine the amount of time that’s being allocated by the exempt employees represent accurate estimated hours. Views of responsible officials: Behavioral Health Services, Inc. acknowledges the finding identified in the 2022 Single Audit and is committed to addressing the issue to ensure compliance and improve internal controls. The following corrective actions will be implemented: - Review and Assessment: We have conducted a thorough review of the finding to understand its root cause and identify areas for improvement. - Policy and Procedure Enhancements: We will update relevant policies or procedures to strengthen systems and prevent recurrence. Views of responsible officials: - Training and Education: Employees involved in the process will undergo additional training to ensure they fully understand compliance requirements and best practices. - Monitoring and Oversight: Management will implement regular monitoring and periodic internal audits to ensure continued compliance and effectiveness of the corrective actions.

Criteria: Under the Uniform Guidance, specifically 2 CFR 200.430, charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition: Documentation for exempt employees' hours was unavailable or incomplete. Cause: Management lacks policy over tracking time on the timesheet for the exempt employees. Since exempt employees are compensated monthly, it is not required for the exempt employees to record time in their timesheet. Effect or potential effect: During our testing over payroll, we noted $13,097 of exempt employee salary expense that was not supported with accurate time records. This amount projects to a possible total error of $276,370. Questioned cost: $276,370 Recommendation: We recommend that management to regularly review the actual hours that exempt employees worked to determine the amount of time that’s being allocated by the exempt employees represent accurate estimated hours. Views of responsible officials: Behavioral Health Services, Inc. acknowledges the finding identified in the 2022 Single Audit and is committed to addressing the issue to ensure compliance and improve internal controls. The following corrective actions will be implemented: - Review and Assessment: We have conducted a thorough review of the finding to understand its root cause and identify areas for improvement. - Policy and Procedure Enhancements: We will update relevant policies or procedures to strengthen systems and prevent recurrence. - Training and Education: Employees involved in the process will undergo additional training to ensure they fully understand compliance requirements and best practices. - Monitoring and Oversight: Management will implement regular monitoring and periodic internal audits to ensure continued compliance and effectiveness of the corrective actions.

Criteria: Under the Uniform Guidance, specifically 2 CFR 200.430, charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition: Documentation for exempt employees' hours was unavailable or incomplete. Cause: Management lacks policy over tracking time on the timesheet for the exempt employees. Since exempt employees are compensated monthly, it is not required for the exempt employees to record time in their timesheet. Effect or potential effect: During our testing over payroll, we noted $3,875 of exempt employee salary expense that was not supported with accurate time records. This amount projects to a possible total error of $91,107. Questioned cost: $91,107 Recommendation: We recommend that management to regularly review the actual hours that exempt employees worked to determine the amount of time that’s being allocated by the exempt employees represent accurate estimated hours. Views of responsible officials: Behavioral Health Services, Inc. acknowledges the finding identified in the 2022 Single Audit and is committed to addressing the issue to ensure compliance and improve internal controls. The following corrective actions will be implemented: - Review and Assessment: We have conducted a thorough review of the finding to understand its root cause and identify areas for improvement. - Policy and Procedure Enhancements: We will update relevant policies or procedures to strengthen systems and prevent recurrence. Views of responsible officials: - Training and Education: Employees involved in the process will undergo additional training to ensure they fully understand compliance requirements and best practices. - Monitoring and Oversight: Management will implement regular monitoring and periodic internal audits to ensure continued compliance and effectiveness of the corrective actions.

Criteria: Under the Uniform Guidance, specifically 2 CFR 200.430, charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition: Documentation for exempt employees' hours was unavailable or incomplete. Cause: Management lacks policy over tracking time on the timesheet for the exempt employees. Since exempt employees are compensated monthly, it is not required for the exempt employees to record time in their timesheet. Effect or potential effect: During our testing over payroll, we noted $13,097 of exempt employee salary expense that was not supported with accurate time records. This amount projects to a possible total error of $276,370. Questioned cost: $276,370 Recommendation: We recommend that management to regularly review the actual hours that exempt employees worked to determine the amount of time that’s being allocated by the exempt employees represent accurate estimated hours. Views of responsible officials: Behavioral Health Services, Inc. acknowledges the finding identified in the 2022 Single Audit and is committed to addressing the issue to ensure compliance and improve internal controls. The following corrective actions will be implemented: - Review and Assessment: We have conducted a thorough review of the finding to understand its root cause and identify areas for improvement. - Policy and Procedure Enhancements: We will update relevant policies or procedures to strengthen systems and prevent recurrence. - Training and Education: Employees involved in the process will undergo additional training to ensure they fully understand compliance requirements and best practices. - Monitoring and Oversight: Management will implement regular monitoring and periodic internal audits to ensure continued compliance and effectiveness of the corrective actions.