Audit 407192

2025-002 PROCUREMENT (repeat comment) Type: Material weakness in internal control over compliance/noncompliance Program: ALN 93.696 Certified Community Behavioral Health Clinics Expansion Grants (CCBHC) Criteria: Per 2 CFR section 200.318, the non-Federal entity, “…must maintain and use documented procedures for procurement transactions under a Federal award or subaward, including for acquisition of property or services. These documented procurement procedures must be consistent with State, local, and tribal laws and regulations and the standards identified in §§ 200.317 through 200.327.” Condition: During testing, it was noted that the CMHSP had not followed procurement requirements for the contract entered into for project evaluation and coordination services. This is the same contract that produced a material finding in the prior year single audit. Cause/Effect: Management oversight. Questioned Cost: $150,000 – the amount paid during the fiscal year pursuant to contract in question. Recommendation: We recommend that the CMHSP review/update policies and procedures to ensure that all federal requirements for procurements are followed for future contracts entered into with federal funds. Management’s Resp: Management is in agreement with this recommendation. Also, the grantor was notified of this finding and has notified the CMHSP that there is no elevated level of risk moving forward through the remainder of the grant cycle.

2025-003 ACTIVITIES ALLOWED/ALLOWABLE COST PRINCIPLES Type: Significant deficiency in internal control over compliance/noncompliance Program: ALN 93.696 Certified Community Behavioral Health Clinics Expansion Grants (CCBHC) Criteria: Per 2 CFR section 200.403(b), costs charged to the grant must, “Confirm to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items.” Condition: During testing, it was noted that the CMHSP charged to the grant an amount of indirect costs that were in excess of amounts allowed per the established budget for this grant. Cause/Effect: Management oversight. Questioned Cost: $35,242. Recommendation: We recommend that the CMHSP review/update policies and procedures to ensure that the calculation for indirect costs charged to the grant follow the requirements and limitations of the grant document. Management’s Resp: Management is in agreement with this recommendation.