FAC Explorer

Finding 1208250 (2025-001)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2026-04-21
Audit: 399222
Organization: Barry County Community Mental Health Authority (MI)
Auditor: ROSLUND PRESTAGE & COMPANY PC

AI Summary

  • Core Issue: Expenditures charged to the grant were not authorized in the budget, indicating a significant deficiency in internal control.
  • Impacted Requirements: Compliance with 2 CFR 200.402 regarding allowable direct costs is not being met.
  • Recommended Follow-Up: CMHSP should review and update policies to ensure only allowable costs are charged to the grant.

Finding Text

2025-001: ACTIVITIES ALLOWED/ALLOWABLE COSTS - DIRECT COSTS Type: Considered a significant deficiency in internal control over compliance Program: ALN 93.696 Certified Community Behavioral Health Clinics Expansion (CCBHC) Grants Criteria: As detailed by 2 CFR 200.402, “the total cost of a Federal award is the sum of the allowable direct and allocable indirect costs less any applicable credits”. Condition: Expenditures charged to the grant were not authorized in the grant budget. Cause/Effect: Management oversight. Questioned Cost: Below the reporting threshold. Recommendation: We recommend that the CMHSP review/update policies and procedures to ensure that only allowable costs are charged to the grant. Management’s Resp: Management is in agreement with this recommendation.

Corrective Action Plan

Condition: Expenditures charged to the grant were not authorized in the grant budget. Corrective Action: Each month, the grant manager and accounting assistant will review the items charged to the grant in detail to ensure that all charges are appropriately accounted for according to the grant manager's direction and approved grant budget. Staff responsible: Kristyn Kostelec, Grant Manager and Karen Watson, Accounting Assistant Anticipated completion date: 6/30/26

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1208251 2025-002
    Material Weakness Repeat
  • 1208252 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $2.17M
93.696 CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC EXPANSION GRANTS $996,190
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $407,790
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $68,000
93.788 OPIOID STR $52,929
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $37,755
93.778 GRANTS TO STATES FOR MEDICAID $18,652
93.136 INJURY PREVENTION AND CONTROL RESEARCH AND STATE AND COMMUNITY BASED PROGRAMS $15,237