Finding Text
#2025-003 FINDING: Grant Tracking Federal Program Affected: Substance Abuse and Mental Health Projects of Regional and National Significance (ALN 93.243) Compliance Requirement: Period of Performance Questioned Costs: None due to adjustments Condition and Cause: An adjustment was made to a three-year prepaid curriculum subscription charged to the Substance Abuse and Mental Health Projects of Regional and National Significance. The prepaid expense was erroneously charged to the program in the amount of $82,000. Criteria and Effect: The SEFA is prepared on the accrual basis of accounting and only expenditures incurred are eligible for reimbursement. The current internal control structure did not identify the errors in draw down request for reimbursement-based federal programs during the year. This could have resulted in material noncompliance. Repeat Finding from Prior Year: Yes, #2024-003 Recommendation: Curriculum subscriptions are allowable under the grant, however, only the amount actually incurred as an expenditure during the period should be charged to the grant period. Response/Corrective Action Plan: See Corrective Action Plan.