Audit 413721

Finding 2025-002 Significant Deficiency in Controls over Compliance and Noncompliance – Special Tests Federal Program: 93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance Year: 2025 Federal Agency: Department of Health and Human Services Criteria – In Accordance with 2 CFR § 200.308(f)(3), the recipient must obtain prior written approval from the federal awarding agency or pass-through entity when the approved project director or principal investigator: - Disengages from the project for more than three continuous months; or - Reduces their committed time and effort by 25% or more from the level approved in the initial competing-year award Condition – The Contract ID 5H79SM083419 required the two key personnel to spend at least 50% level of Effort on the grant. We noted that the two key personnel spent 25% Level of effort and 15% level of effort, respectively, during the fiscal year which constituted a greater than 25% reduction in planned effort. Management did not submit an award amendment regarding the reduction in effort. Cause – Management did not adequately monitor the level of effort of the two key personnel on this Contract. Perspective – The grant program in aggregate had seven key personnel. Two key personnel's reduction in level of effort was not communicated via an amendment to the grantor. Questioned Cost – N/A Effect – Failure to properly notify the granting agency of the reduction in level of effort of key personnel could lead to the funding of this contract being ceased. Recommendation – Management should implement a control to track any reduction in level of effort and notify the grantor if there is a reduction of 25% or more. View of Responsible Officials – See Corrective Action Plan