Finding 1102816 (2024-002)

Department of Health and Human Services Block Grants for Community Mental Health Services – Assistance Listing No. 93.958 2024-002 Proper Identification of Federal Awards on the Schedule of Expenditures of Federal Awards Condition: The Schedule of Expenditures of Federal Awards (SEFA) was not a complete and accurate presentation of all federal grant funding. Criteria: The process of preparing a complete and accurate SEFA is considered a key control over compliance with federal regulations Cause: One significant grant was not included on the SEFA prepared by management. Management originally believed the grant was state funded, but upon further communication with the grantor, it was discovered to be federal funding. Effect: A grant in the amount of $501,832 was not included on the SEFA. The grant was part of a major program requiring additional audit testing. The grant was subsequently added to the SEFA. Recommendation: Our recommendation is to inquire of the grantor and receive confirmation in writing whether an award is federal or state funded and if federal, request the assistance listing number. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. Unless the funding source is clearly stated in the grant agreement, the Organization will inquire of the grantor in writing to document the funding source and assistance listing number, if necessary.