Finding 1206417 (2025-007)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-04-10
Audit: 398404
Organization: Santa Fe Recovery Center, Inc. (NM)
Auditor: SJT GROUP LLC

AI Summary

  • Core Issue: SFRC missed the deadline for submitting the annual single audit reporting package, which was due on March 31, 2026.
  • Impacted Requirements: This violation relates to 2 CFR Part 200.512, which mandates timely submission of audit reports and data collection forms.
  • Recommended Follow-Up: SFRC should enhance its accounting practices by following its policies for timely reconciliations and filling open accounting positions to prevent future delays.

Finding Text

2025-007 – Late Audit Report Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Certified Community Behavioral Health Clinics; Rural Health Outreach and Rural Network Development Program Assistance listing numbers: 93.696; 93.912 Award year: 7/1/2024 – 6/30/2025 Criteria: According to 2 CFR Part 200.512, the annual single audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period (March 31, 2026). Condition: SFRC’s fiscal year 2025 single audit reporting package was not submitted by the due date of March 31, 2026. Context: N/A Questioned Costs: None Cause: There was significant turnover in the accounting department at SFRC during fiscal year 2025. Additionally, the data collection form and reporting package were ready to be submitted by the deadline, but SFRC was unable to submit the information by the deadline. Effect: The data collection form and reporting package was not submitted by the reporting deadline. Auditor’s Recommendation: SFRC should implement the provisions from its Accounting & Financial Management Policies and Procedures Manual so that monthly and annual account reconciliations are performed timely to ensure that the data collection form and reporting package are submitted by the due date. Management’s Response: Management reviewed existing accounting staffing structure, revised position descriptions, and have advertised to fill two of three open positions. Management feels with these revised position descriptions, more focus on accounting operations and procedures.

Corrective Action Plan

2025-007 – Late Audit Report Corrective action plan: Management reviewed existing accounting staffing structure, revised position descriptions, and have advertised to fill two of three open positions. Management feels with these revised position descriptions, more focus on accounting operations and procedures. Personnel responsible for corrective action: Heather King, Interim Chief Executive Officer Estimated corrective action completion date: June 2026

Categories

Reporting Special Tests & Provisions

Other Findings in this Audit

  • 1206404 2025-004
    Material Weakness Repeat
  • 1206405 2025-004
    Material Weakness Repeat
  • 1206406 2025-004
    Material Weakness Repeat
  • 1206407 2025-005
    Material Weakness Repeat
  • 1206408 2025-005
    Material Weakness Repeat
  • 1206409 2025-005
    Material Weakness Repeat
  • 1206410 2025-005
    Material Weakness Repeat
  • 1206411 2025-006
    Material Weakness Repeat
  • 1206412 2025-006
    Material Weakness Repeat
  • 1206413 2025-006
    Material Weakness Repeat
  • 1206414 2025-007
    Material Weakness Repeat
  • 1206415 2025-007
    Material Weakness Repeat
  • 1206416 2025-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.696 CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC EXPANSION GRANTS $1.02M
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $266,588
93.912 RURAL HEALTHCARE SERVICES PROGRAMS $127,553