Finding Text
Subrecipient reports not submitted to the Grantor in a timely manner (Significant Deficiency and Noncompliance) ALN Title and Number: 93.958 – Block Grants for Community Mental Health Services Name of Federal Agency: U.S. Department of Health and Human Services Name of Pass-through Entity: Tennessee Dept. of Mental Health and Substance Abuse Services Condition: Quarterly grant disbursement reports were not timely filed. The reports filed by Behavioral Health Initiatives, Inc. (Grantee) were submitted to the Grantor after the stated deadline. The reports are required to be submitted by the 30th day of the following month after quarter end as noted in the grant agreement. Internal controls over grant compliance did not detect the error. Criteria: The grant contract requires that the Grantee submit the quarterly disbursement reports by the 30th of the month following the end of the quarter. Cause: The Grantee submitted the quarterly disbursement reports after the imposed deadline. The internal controls over grant compliance failed to detect the noncompliance. Effect: The late submissions of the quarterly disbursement reports resulted in noncompliance with the grant agreement during year ended June 30, 2025. Recommendation: We recommend that the Grantee develop specific procedures to ensure that all reports are submitted to the Grantor by the imposed deadline. Response: Management has implemented procedures effective 7/1/2025 to ensure that reports are submitted timely and that any new filing deadlines will be documented and met without exception.