Finding 1134512 (2024-002)

2024-002: ACTIVITIES ALLOWED/ALLOWABLE COSTS – INDIRECT COSTS Type: Considered a significant deficiency in internal control over compliance/noncompliance Program: ALN 93.969 Certified Community Behavioral Health Clinics Expansion (CCBHC) Grants Criteria: Per 2 CFR requirements, and the grant budget, modified total direct costs must exclude the portion of each subaward or contract in excess of $25,000. Condition: The CMHSP included all contract costs, including amounts over $25,000, in the modified total direct costs. Cause/Effect: Management oversight. Questioned Cost: $14,765 Recommendation: We recommend that the CMHSP review/update policies and procedures to ensure that amounts used to calculate indirect costs charged to the grant properly exclude contract amounts over the allowed limit. Management’s Resp: Management is in agreement with this recommendation.