Assistance Listing Number(s): 93.959
Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse
Assistance Listing Number(s): 93.788
Name of Federal Programs or Cluster: State Targeted Response to the Opioid Crisis Grants
Name of Federal Agency: Department of Health and Human Services
Criteria or Specific Requirement: Review and approval of all costs by a person with appropriate knowledge and authority is a requirement for ensuring costs are allowable.
Condition and Context: Review and approval was not routinely documented in the fiscal year ending 6/30/22.
Cause: Routines and habits lapsed during the changes in operations, staffing and management.
Effect or Potential Effect: Undocumented control procedures cannot be confirmed to have been performed.
Repeat Finding: Yes
Recommendation: ARC should implement procedures for documenting review and approval for all time sheets for all employees. Due to the late timing of the 6/30/21 audit, ARC was not able to implement a system prior to June 30, 2022, but has subsequently implemented one prior to the report date.
Views of Responsible Officials: ARC implemented formalized process effective January 1, 2023 including an electronic time record system that will require, track, and document performance of review and approval of employee’s time and is monitored independently by the CFO.
Assistance Listing Number(s): 93.959
Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse
Assistance Listing Number(s): 93.788
Name of Federal Programs or Cluster: State Targeted Response to the Opioid Crisis Grants
Name of Federal Agency: Department of Health and Human Services
Criteria or Specific Requirement: Review and approval of all costs by a person with appropriate knowledge and authority is a requirement for ensuring costs are allowable.
Condition and Context: Review and approval was not routinely documented in the fiscal year ending 6/30/22.
Cause: Routines and habits lapsed during the changes in operations, staffing and management.
Effect or Potential Effect: Undocumented control procedures cannot be confirmed to have been performed.
Repeat Finding: Yes
Recommendation: ARC should implement procedures for documenting review and approval for all time sheets for all employees. Due to the late timing of the 6/30/21 audit, ARC was not able to implement a system prior to June 30, 2022, but has subsequently implemented one prior to the report date.
Views of Responsible Officials: ARC implemented formalized process effective January 1, 2023 including an electronic time record system that will require, track, and document performance of review and approval of employee’s time and is monitored independently by the CFO.
Assistance Listing Number(s): 93.959
Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse
Assistance Listing Number(s): 93.788
Name of Federal Program or Cluster: State Targeted Response to the Opioid Crisis Grants
Name of Federal Agency: Department of Health and Human Services
Criteria or Specific Requirement: Overhead and indirect costs must be equitably and consistently allocated to grants by using a methodology that is written and designed to ensure these attributes are consistently present.
Condition and Context: The allocated assignment of overhead costs isn’t clearly defined or consistently implemented.
Cause: Routines and habits lapsed during the changes in operations, staffing and management. Changes in key management positions has reduced the institutional knowledge and experience in this area.
Effect or Potential Effect: Grants might be charged the wrong portion of overhead costs.
Repeat Finding: Yes
Recommendation: Develop and write down an allocation plan that identifies all indirect costs and clearly defines an equitable basis of allocation, and then implement the plan and monitor its performance. While this was not implemented during the year ended June 30, 2022, it has subsequently been implemented prior to the report date.
Views of Responsible Officials: ARC implemented formalized process effective January 1, 2023 under which ARC will review, document, implement and monitor procedures for the allocation of indirect costs to an equitable basis of allocation with a methodology that is consistent and clearly defined and is independently monitored by the CFO.
Assistance Listing Number(s): 93.959
Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse
Assistance Listing Number(s): 93.788
Name of Federal Program or Cluster: State Targeted Response to the Opioid Crisis Grants
Name of Federal Agency: Department of Health and Human Services
Criteria or Specific Requirement: Overhead and indirect costs must be equitably and consistently allocated to grants by using a methodology that is written and designed to ensure these attributes are consistently present.
Condition and Context: The allocated assignment of overhead costs isn’t clearly defined or consistently implemented.
Cause: Routines and habits lapsed during the changes in operations, staffing and management. Changes in key management positions has reduced the institutional knowledge and experience in this area.
Effect or Potential Effect: Grants might be charged the wrong portion of overhead costs.
Repeat Finding: Yes
Recommendation: Develop and write down an allocation plan that identifies all indirect costs and clearly defines an equitable basis of allocation, and then implement the plan and monitor its performance. While this was not implemented during the year ended June 30, 2022, it has subsequently been implemented prior to the report date.
Views of Responsible Officials: ARC implemented formalized process effective January 1, 2023 under which ARC will review, document, implement and monitor procedures for the allocation of indirect costs to an equitable basis of allocation with a methodology that is consistent and clearly defined and is independently monitored by the CFO.
Assistance Listing Number(s): 93.959
Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse
Assistance Listing Number(s): 93.788
Name of Federal Program or Cluster: State Targeted Response to the Opioid Crisis Grants
Name of Federal Agency: Department of Health and Human Services
Criteria or Specific Requirement: Audits under Uniform Guidance are required to be submitted in the Federal Audit Clearinghouse within nine months of the fiscal year end.
Condition and Context: ARC could not support the planning, performance and completion of the audit before 9-month period had passed.
Cause: Routines and habits lapsed during the changes in operations, staffing and management. Changes in key management positions has reduced the institutional knowledge and experience in this area.
Effect or Potential Effect: The reporting requirement of Uniform Guidance is not met.
Repeat Finding: No
Recommendation: We recommend management continue to make the improvements in staffing and resources to ensure timely financial statement close and audit support. While staffing during the year under audit was not sufficient, it has been addressed and improved subsequent to the report date.
Views of Responsible Officials: In 2023, ARC has made significant enhancements to its accounting team in both experience and depth of knowledge and has implemented processes and procedures to support planning, performing and completing the audit on time.
Assistance Listing Number(s): 93.959
Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse
Assistance Listing Number(s): 93.788
Name of Federal Program or Cluster: State Targeted Response to the Opioid Crisis Grants
Name of Federal Agency: Department of Health and Human Services
Criteria or Specific Requirement: Audits under Uniform Guidance are required to be submitted in the Federal Audit Clearinghouse within nine months of the fiscal year end.
Condition and Context: ARC could not support the planning, performance and completion of the audit before 9-month period had passed.
Cause: Routines and habits lapsed during the changes in operations, staffing and management. Changes in key management positions has reduced the institutional knowledge and experience in this area.
Effect or Potential Effect: The reporting requirement of Uniform Guidance is not met.
Repeat Finding: No
Recommendation: We recommend management continue to make the improvements in staffing and resources to ensure timely financial statement close and audit support. While staffing during the year under audit was not sufficient, it has been addressed and improved subsequent to the report date.
Views of Responsible Officials: In 2023, ARC has made significant enhancements to its accounting team in both experience and depth of knowledge and has implemented processes and procedures to support planning, performing and completing the audit on time.
Assistance Listing Number(s): 93.959
Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse
Assistance Listing Number(s): 93.788
Name of Federal Program or Cluster: State Targeted Response to the Opioid Crisis Grants
Name of Federal Agency: Department of Health and Human Services
Criteria or Specific Requirement: Non-Federal entities must minimize the time elapsing between the transfer of funds from the U.S. Treasury or pass-through entity and disbursement by the non-Federal entity for direct program or project costs and the proportionate share of allowable indirect costs (2 CFR section 200.305(b)).
Condition and Context: The balance of refundable advances was not reconciled during the fiscal period, which should have informed the process for matching funding with expenses and the calculation of amounts requested to draw for contract expenses.
Cause: Routines and habits lapsed during the changes in operations, staffing and management. Changes in key management positions has reduced the institutional knowledge and experience in this area.
Effect or Potential Effect: Grant funding for reimbursement of expenses are not supported in the contract period and funds might be required to be returned to grantors.
Repeat Finding: No
Recommendation: For each contract, ARC must reconcile refundable advances routinely and in coordination with the recognition and allocation of allowable costs and to inform the determination of draw request amounts. While this did not occur during the year ended June 30, 2022, steps have been taken to reconcile all accounts subsequent to the report date.
Views of Responsible Officials: A formalized and monitored process was implemented to reconcile refundable advances routinely and in coordination with the recognition and allocation of allowable costs effective August of 2023.
Assistance Listing Number(s): 93.959
Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse
Assistance Listing Number(s): 93.788
Name of Federal Program or Cluster: State Targeted Response to the Opioid Crisis Grants
Name of Federal Agency: Department of Health and Human Services
Criteria or Specific Requirement: Non-Federal entities must minimize the time elapsing between the transfer of funds from the U.S. Treasury or pass-through entity and disbursement by the non-Federal entity for direct program or project costs and the proportionate share of allowable indirect costs (2 CFR section 200.305(b)).
Condition and Context: The balance of refundable advances was not reconciled during the fiscal period, which should have informed the process for matching funding with expenses and the calculation of amounts requested to draw for contract expenses.
Cause: Routines and habits lapsed during the changes in operations, staffing and management. Changes in key management positions has reduced the institutional knowledge and experience in this area.
Effect or Potential Effect: Grant funding for reimbursement of expenses are not supported in the contract period and funds might be required to be returned to grantors.
Repeat Finding: No
Recommendation: For each contract, ARC must reconcile refundable advances routinely and in coordination with the recognition and allocation of allowable costs and to inform the determination of draw request amounts. While this did not occur during the year ended June 30, 2022, steps have been taken to reconcile all accounts subsequent to the report date.
Views of Responsible Officials: A formalized and monitored process was implemented to reconcile refundable advances routinely and in coordination with the recognition and allocation of allowable costs effective August of 2023.
Assistance Listing Number(s): 93.959
Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse
Assistance Listing Number(s): 93.788
Name of Federal Programs or Cluster: State Targeted Response to the Opioid Crisis Grants
Name of Federal Agency: Department of Health and Human Services
Criteria or Specific Requirement: Review and approval of all costs by a person with appropriate knowledge and authority is a requirement for ensuring costs are allowable.
Condition and Context: Review and approval was not routinely documented in the fiscal year ending 6/30/22.
Cause: Routines and habits lapsed during the changes in operations, staffing and management.
Effect or Potential Effect: Undocumented control procedures cannot be confirmed to have been performed.
Repeat Finding: Yes
Recommendation: ARC should implement procedures for documenting review and approval for all time sheets for all employees. Due to the late timing of the 6/30/21 audit, ARC was not able to implement a system prior to June 30, 2022, but has subsequently implemented one prior to the report date.
Views of Responsible Officials: ARC implemented formalized process effective January 1, 2023 including an electronic time record system that will require, track, and document performance of review and approval of employee’s time and is monitored independently by the CFO.
Assistance Listing Number(s): 93.959
Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse
Assistance Listing Number(s): 93.788
Name of Federal Programs or Cluster: State Targeted Response to the Opioid Crisis Grants
Name of Federal Agency: Department of Health and Human Services
Criteria or Specific Requirement: Review and approval of all costs by a person with appropriate knowledge and authority is a requirement for ensuring costs are allowable.
Condition and Context: Review and approval was not routinely documented in the fiscal year ending 6/30/22.
Cause: Routines and habits lapsed during the changes in operations, staffing and management.
Effect or Potential Effect: Undocumented control procedures cannot be confirmed to have been performed.
Repeat Finding: Yes
Recommendation: ARC should implement procedures for documenting review and approval for all time sheets for all employees. Due to the late timing of the 6/30/21 audit, ARC was not able to implement a system prior to June 30, 2022, but has subsequently implemented one prior to the report date.
Views of Responsible Officials: ARC implemented formalized process effective January 1, 2023 including an electronic time record system that will require, track, and document performance of review and approval of employee’s time and is monitored independently by the CFO.
Assistance Listing Number(s): 93.959
Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse
Assistance Listing Number(s): 93.788
Name of Federal Program or Cluster: State Targeted Response to the Opioid Crisis Grants
Name of Federal Agency: Department of Health and Human Services
Criteria or Specific Requirement: Overhead and indirect costs must be equitably and consistently allocated to grants by using a methodology that is written and designed to ensure these attributes are consistently present.
Condition and Context: The allocated assignment of overhead costs isn’t clearly defined or consistently implemented.
Cause: Routines and habits lapsed during the changes in operations, staffing and management. Changes in key management positions has reduced the institutional knowledge and experience in this area.
Effect or Potential Effect: Grants might be charged the wrong portion of overhead costs.
Repeat Finding: Yes
Recommendation: Develop and write down an allocation plan that identifies all indirect costs and clearly defines an equitable basis of allocation, and then implement the plan and monitor its performance. While this was not implemented during the year ended June 30, 2022, it has subsequently been implemented prior to the report date.
Views of Responsible Officials: ARC implemented formalized process effective January 1, 2023 under which ARC will review, document, implement and monitor procedures for the allocation of indirect costs to an equitable basis of allocation with a methodology that is consistent and clearly defined and is independently monitored by the CFO.
Assistance Listing Number(s): 93.959
Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse
Assistance Listing Number(s): 93.788
Name of Federal Program or Cluster: State Targeted Response to the Opioid Crisis Grants
Name of Federal Agency: Department of Health and Human Services
Criteria or Specific Requirement: Overhead and indirect costs must be equitably and consistently allocated to grants by using a methodology that is written and designed to ensure these attributes are consistently present.
Condition and Context: The allocated assignment of overhead costs isn’t clearly defined or consistently implemented.
Cause: Routines and habits lapsed during the changes in operations, staffing and management. Changes in key management positions has reduced the institutional knowledge and experience in this area.
Effect or Potential Effect: Grants might be charged the wrong portion of overhead costs.
Repeat Finding: Yes
Recommendation: Develop and write down an allocation plan that identifies all indirect costs and clearly defines an equitable basis of allocation, and then implement the plan and monitor its performance. While this was not implemented during the year ended June 30, 2022, it has subsequently been implemented prior to the report date.
Views of Responsible Officials: ARC implemented formalized process effective January 1, 2023 under which ARC will review, document, implement and monitor procedures for the allocation of indirect costs to an equitable basis of allocation with a methodology that is consistent and clearly defined and is independently monitored by the CFO.
Assistance Listing Number(s): 93.959
Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse
Assistance Listing Number(s): 93.788
Name of Federal Program or Cluster: State Targeted Response to the Opioid Crisis Grants
Name of Federal Agency: Department of Health and Human Services
Criteria or Specific Requirement: Audits under Uniform Guidance are required to be submitted in the Federal Audit Clearinghouse within nine months of the fiscal year end.
Condition and Context: ARC could not support the planning, performance and completion of the audit before 9-month period had passed.
Cause: Routines and habits lapsed during the changes in operations, staffing and management. Changes in key management positions has reduced the institutional knowledge and experience in this area.
Effect or Potential Effect: The reporting requirement of Uniform Guidance is not met.
Repeat Finding: No
Recommendation: We recommend management continue to make the improvements in staffing and resources to ensure timely financial statement close and audit support. While staffing during the year under audit was not sufficient, it has been addressed and improved subsequent to the report date.
Views of Responsible Officials: In 2023, ARC has made significant enhancements to its accounting team in both experience and depth of knowledge and has implemented processes and procedures to support planning, performing and completing the audit on time.
Assistance Listing Number(s): 93.959
Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse
Assistance Listing Number(s): 93.788
Name of Federal Program or Cluster: State Targeted Response to the Opioid Crisis Grants
Name of Federal Agency: Department of Health and Human Services
Criteria or Specific Requirement: Audits under Uniform Guidance are required to be submitted in the Federal Audit Clearinghouse within nine months of the fiscal year end.
Condition and Context: ARC could not support the planning, performance and completion of the audit before 9-month period had passed.
Cause: Routines and habits lapsed during the changes in operations, staffing and management. Changes in key management positions has reduced the institutional knowledge and experience in this area.
Effect or Potential Effect: The reporting requirement of Uniform Guidance is not met.
Repeat Finding: No
Recommendation: We recommend management continue to make the improvements in staffing and resources to ensure timely financial statement close and audit support. While staffing during the year under audit was not sufficient, it has been addressed and improved subsequent to the report date.
Views of Responsible Officials: In 2023, ARC has made significant enhancements to its accounting team in both experience and depth of knowledge and has implemented processes and procedures to support planning, performing and completing the audit on time.
Assistance Listing Number(s): 93.959
Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse
Assistance Listing Number(s): 93.788
Name of Federal Program or Cluster: State Targeted Response to the Opioid Crisis Grants
Name of Federal Agency: Department of Health and Human Services
Criteria or Specific Requirement: Non-Federal entities must minimize the time elapsing between the transfer of funds from the U.S. Treasury or pass-through entity and disbursement by the non-Federal entity for direct program or project costs and the proportionate share of allowable indirect costs (2 CFR section 200.305(b)).
Condition and Context: The balance of refundable advances was not reconciled during the fiscal period, which should have informed the process for matching funding with expenses and the calculation of amounts requested to draw for contract expenses.
Cause: Routines and habits lapsed during the changes in operations, staffing and management. Changes in key management positions has reduced the institutional knowledge and experience in this area.
Effect or Potential Effect: Grant funding for reimbursement of expenses are not supported in the contract period and funds might be required to be returned to grantors.
Repeat Finding: No
Recommendation: For each contract, ARC must reconcile refundable advances routinely and in coordination with the recognition and allocation of allowable costs and to inform the determination of draw request amounts. While this did not occur during the year ended June 30, 2022, steps have been taken to reconcile all accounts subsequent to the report date.
Views of Responsible Officials: A formalized and monitored process was implemented to reconcile refundable advances routinely and in coordination with the recognition and allocation of allowable costs effective August of 2023.
Assistance Listing Number(s): 93.959
Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse
Assistance Listing Number(s): 93.788
Name of Federal Program or Cluster: State Targeted Response to the Opioid Crisis Grants
Name of Federal Agency: Department of Health and Human Services
Criteria or Specific Requirement: Non-Federal entities must minimize the time elapsing between the transfer of funds from the U.S. Treasury or pass-through entity and disbursement by the non-Federal entity for direct program or project costs and the proportionate share of allowable indirect costs (2 CFR section 200.305(b)).
Condition and Context: The balance of refundable advances was not reconciled during the fiscal period, which should have informed the process for matching funding with expenses and the calculation of amounts requested to draw for contract expenses.
Cause: Routines and habits lapsed during the changes in operations, staffing and management. Changes in key management positions has reduced the institutional knowledge and experience in this area.
Effect or Potential Effect: Grant funding for reimbursement of expenses are not supported in the contract period and funds might be required to be returned to grantors.
Repeat Finding: No
Recommendation: For each contract, ARC must reconcile refundable advances routinely and in coordination with the recognition and allocation of allowable costs and to inform the determination of draw request amounts. While this did not occur during the year ended June 30, 2022, steps have been taken to reconcile all accounts subsequent to the report date.
Views of Responsible Officials: A formalized and monitored process was implemented to reconcile refundable advances routinely and in coordination with the recognition and allocation of allowable costs effective August of 2023.