Audit 397046

Federal agency: U.S. Department of Health and Human Services Federal program title: Block Grants for Community Mental Health Services Assistance Listing Number: 93.958 Pass-Through Agency: Commonwealth of Massachusetts Pass-Through Number(s): Various Award Period: 7/1/2024 – 6/30/2025 Type of Finding: Material Weakness on Internal Control over Compliance Criteria or specific requirement: The Organization is required to maintain records of the time spent on each federal award. The records must reflect the total activity for which each employee is compensated and the percentage of their time that is spent on each federal award. Condition: During the year under audit, the Organization transitioned to a new payroll service provider and did not retain employee timesheets for the audit period. As a result, timesheets were not available to support the payroll registers provided. However, the contract is a unit‑rate contract, and compensation is not based on actual hours worked. Questioned Costs: N/A Context: The Organization did not have timesheets to support the allocation of time spent on federal awards. Payroll registers were available and provided for review. Cause: The Organization did not retain employee timesheets during the transition to a new payroll provider and did not have controls in place to ensure continued retention of time and effort documentation. Effect: Payroll registers were provided to support payroll expenses; however, there was no supporting documentation (timesheets) to substantiate the payroll registers or the allocation of time to federal awards. There is no noncompliance with the terms of the contract, as the contract is a unit‑rate contract and does not require payment based on actual hours worked. Repeat Finding: Yes Recommendation: It is recommended that the Organization design and implement controls to ensure that time and effort related to federal programs is appropriately documented and retained in accordance with Uniform Guidance requirements, regardless of contract type. Views of responsible officials: There is no disagreement with the audit finding.

Federal agency: U.S. Department of Health and Human Services Federal program title: Block Grants for Community Mental Health Services Assistance Listing Number: 93.958 Pass-Through Agency: Commonwealth of Massachusetts Pass-Through Number(s): Various Award Period: 7/1/2024 – 6/30/2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Organizations must establish and maintain effective internal controls that safeguard cash and other assets, prevent improper or unauthorized disbursements, ensure compliance with federal statutes, regulations, and award terms. Condition: During our testing, we noted one instance out of a sample of forty where invoices were not supported with documented approval in accordance with internal control policies. Questioned Costs: None Context: The Organization did not obtain proper approval for one invoices. Cause: The controls in place were not operating effectively to ensure expenses were properly approved. Effect: Expenses were not properly approved in accordance with internal controls. Repeat Finding: No Recommendation: It is recommended that the Organization review controls in place to ensure expenses are approved and maintain evidence of approval. Views of Responsible Officials: There is no disagreement with the audit finding.