FAC Explorer

Audit 40000

FY End
2022-06-30
Total Expended
$1.70M
Findings
4
Programs
7
Organization: Southeast Mental Health Services (CO)
Year: 2022 Accepted: 2022-10-27
Auditor: Biggskofford PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
46071 2022-001 Material Weakness - B
46072 2022-002 Significant Deficiency - L
622513 2022-001 Material Weakness - B
622514 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $862,024 Yes 2
93.498 Health Resources and Services Administration (hrsa) $793,058 Yes 0
10.766 Community Facilities Loans and Grants (cluster) $12,172 - 0
93.991 Cdc Block Grant- A22phb Phhs Block Grant Osp $8,900 - 0
14.252 Capacity Building for Community Development and Affordable Housing Grants $8,394 - 0
10.525 Nifa Rural Mental Health $8,029 - 0
93.069 Hhs Centers for Disease Control and Prevention $7,500 - 0

Contacts

Name Title Type
H79SM0832870 Joseph Carrica III Auditee
7193845446 Bret Wichert Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the SEFA 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 to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards ("SEFA") includes the federal award activity of Southeast Health Group, under programs of the federal government, for the year ended June 30, 2022. The information in this 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 SEFA presents only a selected portion of the operations of Southeast Health Group, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of Southeast Health Group.
Title: Other Items Accounting Policies: Expenditures reported on the SEFA 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 to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Pass-through entity identifying numbers have been included where available.

Finding Details

Finding 2022-001
2022-001 "CCBHC Implementation Project - CFDA No. 93.829; Grant No. 1H79SM083287-01 Grant Period February 15, 2021 - February 14, 2023" Condition: Material Weakness - The Organization does not have sufficient internal controls to ensure proper allocations of payroll related to the various programs. Criteria: The CCHBC Implementation project award and Uniform Guidance requires recipients to maintain a standard of internal controls to ensure that the proper allocation of payroll related costs are based on actual time and effort toward the grant project. Cause: During the review of payroll costs, we were unable to identify all of the time and effort coded to the programs. Per our discussion with management, it was determined that the Organization does have a policy in place, however, the policy is not enforced and therefore there are some program related costs that are estimated each month. Effect: Program compliance requirements are at risk of not being met. Recommendation: Southeast Health Group should maintain an environment in which employees are required to track their time based on the specific programs in order to ensure that the time and effort costs are trackable for all employees that work on the projects.
Finding 2022-002
2022-002 Schedule of Expenditures of Federal Awards (SEFA) Condition: Significant Deficiency - During the preparation of the SEFA, various funds were included that Southeast Mental Health was only a contractor on and not awarded the funds as a pass-through entity. Criteria: The Uniform Guidance requires that funding that is to be listed on the SEFA are to be directly awarded by the federal government or a pass-through entity and not funds that are received due to contract work. Cause: During our review of the award agreements provided to support the SEFA we noted various agreements that were contracts and not awarding agreements. Effect: Funding could be overstated on the SEFA and could affect the calculations required for Single Audit. Recommendation: Southeast Health Group should only include funding awarded to the Organization for the continuation of their programs on the SEFA.
Finding 2022-001
2022-001 "CCBHC Implementation Project - CFDA No. 93.829; Grant No. 1H79SM083287-01 Grant Period February 15, 2021 - February 14, 2023" Condition: Material Weakness - The Organization does not have sufficient internal controls to ensure proper allocations of payroll related to the various programs. Criteria: The CCHBC Implementation project award and Uniform Guidance requires recipients to maintain a standard of internal controls to ensure that the proper allocation of payroll related costs are based on actual time and effort toward the grant project. Cause: During the review of payroll costs, we were unable to identify all of the time and effort coded to the programs. Per our discussion with management, it was determined that the Organization does have a policy in place, however, the policy is not enforced and therefore there are some program related costs that are estimated each month. Effect: Program compliance requirements are at risk of not being met. Recommendation: Southeast Health Group should maintain an environment in which employees are required to track their time based on the specific programs in order to ensure that the time and effort costs are trackable for all employees that work on the projects.
Finding 2022-002
2022-002 Schedule of Expenditures of Federal Awards (SEFA) Condition: Significant Deficiency - During the preparation of the SEFA, various funds were included that Southeast Mental Health was only a contractor on and not awarded the funds as a pass-through entity. Criteria: The Uniform Guidance requires that funding that is to be listed on the SEFA are to be directly awarded by the federal government or a pass-through entity and not funds that are received due to contract work. Cause: During our review of the award agreements provided to support the SEFA we noted various agreements that were contracts and not awarding agreements. Effect: Funding could be overstated on the SEFA and could affect the calculations required for Single Audit. Recommendation: Southeast Health Group should only include funding awarded to the Organization for the continuation of their programs on the SEFA.