FAC Explorer

Audit 369861

FY End
2024-12-31
Total Expended
$2.67M
Findings
3
Programs
5
Organization: Apache Behavioral Health Services (NM)
Year: 2024 Accepted: 2025-09-30
Auditor: Sjt Group LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1157650 2024-002 Material Weakness Yes B
1157651 2024-002 Material Weakness Yes B
1157652 2024-002 Material Weakness Yes B

Programs

ALN Program Spent Major Findings
93.959 Block Grants for Prevention and Treatment of Substance Abuse $792,932 Yes 0
93.778 Medical Assistance Program $510,000 Yes 1
93.441 Indian Self-Determination $285,021 Yes 1
93.958 Block Grants for Community Mental Health Services $143,827 Yes 0
93.788 Opioid Str $7,773 Yes 0

Contacts

Name Title Type
U3MUUEH8NEU5 Alethea Velasquez Auditee
9283384811 Joshua, Trujillo Auditor
No contacts on file

Notes to SEFA

General The accompanying schedule of expenditures of federal awards presents the federal financial assistance programs of Apache Behavioral Health Services, Inc. (ABHS) and is presented on the modified accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Other Direct Reimbursements ABHS receives direct reimbursement revenue from federal agencies under the Medicaid program, which are not subject to the requirements of Title 2 CFR Part 200 and are not presented in the accompanying schedule. Indirect Cost Rate ABHS has a negotiated indirect cost rate and, therefore, has elected not to use the 10% de minimis indirect cost rate.
ABHS did not provide any federal awards to subrecipients during fiscal year 2024.
The following is a reconciliation of the expenditures reported on the schedule of expenditures of federal awards to the financial statements: Expenditures according to the schedule of expenditures of federal awards $2,668,265 Expenses funded by other sources 22,162,764 Expenses according to the financial statements $24,831,029

Finding Details

Finding 2024-002
2024-002 — Allowable Costs/Cost Principles Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Indian Self-Determination, Medical Assistance Program ALN: 93.441, 93.778 Award period: 1/1/2024 – 12/31/2026, 1/1/2024 – 12/31/2024 Criteria: According to 2 CFR Part 200.403, to be allowable under federal awards, costs must be adequately documented. Additionally, the 2 CFR Part 200.430 requires that charges to Federal awards for salaries and wages must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: Employee benefits expenditures charged to the programs do not agree to supporting documentation, such as employee benefit provider premium invoices. Context: All employee benefits charged to the programs. Questioned Costs: Undeterminable Cause: The payroll module and account structure setup in the accounting system (multiple benefits going into one benefit account) made it virtually impossible to reconcile employer benefits to the employer benefits provider premium invoices and/or employee benefit election forms. Effect: ABHS may not be able to demonstrate that the costs charged to federal programs are allowable. Auditor’s Recommendations: ABHS should implement a reconciliation process to ensure that employee benefit expenditures charged to federal programs agree with employee benefit provider premiums invoices and/or employee benefit election forms. Management’s Response: ABHS has implemented a new accounting and payroll system which allows the organization to reconcile employee benefit expenditures monthly. These systems were implemented in March and April of 2025 and management expects this finding to be resolved in 2025.