Finding 1155424 (2022-011)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2022

Accepted

2025-09-25

Audit: 367706

Organization: Headquarters Kansas, Inc. (KS)

Auditor: Ssc CPAS P A

AI Summary

Core Issue: The Organization lacks written internal control policies for compliance, violating CFR 200 §200.303.
Impacted Requirements: Failure to establish these controls increases the risk of noncompliance with laws and regulations.
Recommended Follow-Up: The Organization should draft and implement written procedures to meet Uniform Guidance requirements, with management already seeking external assistance.

Finding Text

2022-011 Written Controls over Compliance (Significant Deficiency) Criteria: CFR 200 §200.303. The Organization is required to have written policies and procedures for controls surrounding compliance. Condition: The Organization does not maintain written internal control policies and procedures over compliance as required by Uniform Guidance. Cause: The Organization’s policies and procedures were not designed to ensure compliance with Uniform Guidance. Effect: Increased risk of noncompliance with laws and regulations. Questioned Costs: None. Perspective: The Organization has multiple compliance findings and was unaware of the requirement to have written internal control policies and procedures over compliance. Repeat Finding: No. Recommendation: We recommend the Organization become familiar with the requirements of Uniform Guidance draft control procedures to ensure compliance. Views of Responsible Officials: Management agrees with the finding and is working to develop proper written policies and procedures for internal control over compliance in consultation with an outside accounting firm.

Corrective Action Plan

2022-011 Written Controls over Compliance (Significant Deficiency) Recommendation: We recommend the Organization become familiar with the requirements of Uniform Guidance and implement policies to ensure compliance. Action Taken (Unaudited): Management has worked to update its control procedures to include proper written policies for the internal control over financial reporting to ensure conformity with U.S. GAAP. Dan Watkins is responsible for this corrective action. To address this, the organization hired an outside accounting firm as a consultant in January 2024 and updated its policies, the most recent update in February 2025 with review continuing as audits for 2023 and 2024 .

Other Findings in this Audit

1155420 2022-007

Material Weakness Repeat
1155421 2022-008

Material Weakness Repeat
1155422 2022-009

Material Weakness Repeat
1155423 2022-010

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
21.027	Coronavirus State and Local Fiscal Recovery Funds	$969,692
93.243	Substance Abuse and Mental Health Services Projects of Regional and National Significance	$45,849
93.958	Block Grants for Community Mental Health Services	$14,968