FAC Explorer

Finding 1208251 (2025-002)

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: The CMHSP included all contract costs in modified total direct costs, violating grant requirements.
  • Impacted Requirements: Costs over $25,000 must be excluded from calculations per 2 CFR regulations.
  • Recommended Follow-Up: Update policies to ensure compliance with cost calculations for indirect costs; management agrees with this action.

Finding Text

2025-002: ACTIVITIES ALLOWED/ALLOWABLE COSTS – INDIRECT COSTS Type: Considered a significant deficiency in internal control over compliance/noncompliance Program: ALN 93.696 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: Below the reporting threshold. 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.

Corrective Action Plan

Condition: The CMHSP included all contract costs, including amounts over $25,000 in the modified total direct costs. Corrective Action: Those involved in managing and reporting for the grant will review the approved budget to ensure understanding of what has been approved by SAMHSA. Prior to requesting funds each month, accounting assistant and chief operating officer will review total costs to date to ensure they are accounted properly in line with modified total direct costs. At year end, a final check will occur to ensure all costs are reported according to modified total direct costs methodology. Staff responsible: Kristyn Kostelec, Grant Manager, Karen Watson, Accounting Assistant, and Kelly Jenkins, Chief Operating Officer Anticipated completion date: 12/30/26

Categories

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles Reporting Significant Deficiency

Other Findings in this Audit

  • 1208250 2025-001
    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