Finding 1215621 (2025-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-05-27
Audit: 402329
Organization: The Montrose Center (TX)

AI Summary

  • Core Issue: Late submission of Federal Financial Reports and lack of review led to significant deficiencies in compliance.
  • Impacted Requirements: Must adhere to U.S. Department of Health and Human Services reporting criteria for timely and accurate financial reporting.
  • Recommended Follow-Up: Strengthen internal controls and ensure independent review of reports before submission to avoid future violations.

Finding Text

Finding #2025-004 – Reporting – Significant Deficiency and Other Noncompliance. Applicable federal programs: U.S. Department of Health and Human Services, Assistance Listing #93.959, Block Grants for Prevention and Treatment of Substance Abuse, Recovery Support Services, Contract Number: HHS000130500013, Contract Year: 09/01/24-08/31/25; Prevention and Behavioral Health Promotion Youth Prevention Services, Contract Number: HHS001344700032, Contract Year: 09/01/24-08/31/25. Criteria: Reporting – The U. S. Department of Health and Human Services requires quarterly and annual Federal Financial Reports be submitted to report expenditures under federal awards. Condition and context: During our testing of the Federal Financial Reports, we noted that the final financial status reports were submitted late and the reports did not have evidence of review and approval. Additionally, a recoupment was required by the funder upon review of the closeout report for contract number HHS000130500013. Cause: Management did not have controls in place to ensure reporting was submitted timely, accurately reflected only allowable costs in line with the total contract budget and have a secondary review prior to submission. Effect: Failure to adequately establish and maintain a system of internal controls over grant reporting may result in the Montrose Center violating or failing to meet the grant contract requirements. Recommendation: Re-emphasize policies and procedures to meet the grant reporting requirements and ensure that all reports are independently reviewed prior to submission. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Corrective Action Plan

Finding #2025-004 – Reporting – Significant Deficiency and Other Noncompliance. Applicable federal programs: U.S. Department of Health and Human Services, Assistance Listing #93.959, Block Grants for Prevention and Treatment of Substance Abuse, Recovery Support Services, Contract Number: HHS000130500013, Contract Year: 09/01/24-08/31/25; Prevention and Behavioral Health Promotion Youth Prevention Services, Contract Number: HHS001344700032, Contract Year: 09/01/24-08/31/25. Condition and context: During our testing of the Federal Financial Reports, we noted that the final financial status reports were submitted late and the reports did not have evidence of review and approval. Additionally, a recoupment of $33,541 was required by the funder upon review of the closeout report for contract number HHS000130500013. Recommendation: Re-emphasize policies and procedures to meet the grant reporting requirements and ensure that all reports are independently reviewed prior to submission. Planned corrective action: Management will maintain a grant reporting deliverables calendar covering all federal and state reporting requirements, with internal due dates set in advance of funder deadlines and assigned to a specific grant manager. No Federal Financial Report or closeout report will be submitted without documented independent review and approval by the Controller, with preparer, reviewer, and approver sign-off retained in the grant file alongside the supporting reconciliation to the CYMA general ledger. Responsible officer: Michael McIntyre, Chief Administrative Officer. Estimated completion date: August 31, 2026.

Categories

Reporting Allowable Costs / Cost Principles HUD Housing Programs Significant Deficiency

Other Findings in this Audit

  • 1215610 2025-003
    Material Weakness Repeat
  • 1215611 2025-003
    Material Weakness Repeat
  • 1215612 2025-003
    Material Weakness Repeat
  • 1215613 2025-003
    Material Weakness Repeat
  • 1215614 2025-003
    Material Weakness Repeat
  • 1215615 2025-003
    Material Weakness Repeat
  • 1215616 2025-003
    Material Weakness Repeat
  • 1215617 2025-003
    Material Weakness Repeat
  • 1215618 2025-004
    Material Weakness Repeat
  • 1215619 2025-003
    Material Weakness Repeat
  • 1215620 2025-003
    Material Weakness Repeat
  • 1215622 2025-003
    Material Weakness Repeat
  • 1215623 2025-003
    Material Weakness Repeat
  • 1215624 2025-003
    Material Weakness Repeat
  • 1215625 2025-003
    Material Weakness Repeat
  • 1215626 2025-003
    Material Weakness Repeat
  • 1215627 2025-003
    Material Weakness Repeat
  • 1215628 2025-003
    Material Weakness Repeat
  • 1215629 2025-003
    Material Weakness Repeat
  • 1215630 2025-003
    Material Weakness Repeat
  • 1215631 2025-003
    Material Weakness Repeat
  • 1215632 2025-003
    Material Weakness Repeat
  • 1215633 2025-003
    Material Weakness Repeat
  • 1215634 2025-003
    Material Weakness Repeat
  • 1215635 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $2.13M
93.914 HIV EMERGENCY RELIEF PROJECT GRANTS $869,517
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $525,681
14.267 CONTINUUM OF CARE PROGRAM $347,331
93.917 HIV CARE FORMULA GRANTS $291,759
93.939 HIV PREVENTION ACTIVITIES NON-GOVERNMENTAL ORGANIZATION BASED $282,213
93.732 MENTAL AND BEHAVIORAL HEALTH EDUCATION AND TRAINING GRANTS $269,363
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $231,589
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $145,375
93.788 OPIOID STR $83,320
93.940 HIV PREVENTION AND SURVEILLANCE ACTIVITIES-HEALTH DEPARTMENT BASED $82,361
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $80,543
93.045 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART C, NUTRITION SERVICES $26,707
93.153 COORDINATED SERVICES AND ACCESS TO RESEARCH FOR WOMEN, INFANTS, CHILDREN, AND YOUTH $23,057
93.671 FAMILY VIOLENCE PREVENTION AND SERVICES/DOMESTIC VIOLENCE SHELTER AND SUPPORTIVE SERVICES $18,922
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $6,192
93.667 SOCIAL SERVICES BLOCK GRANT $4,852
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $2,916