Finding 1222671 (2025-001)

Material Weakness Repeat Finding
Requirement
M
Questioned Costs
-
Year
2025
Accepted
2026-07-01

AI Summary

  • Core Issue: Contracts with subrecipients lacked required disclosures as per 2 CFR 200.332.
  • Impacted Requirements: Significant deficiency in internal controls over compliance with federal regulations.
  • Recommended Follow-Up: Update all subrecipient contracts to include the necessary compliance language.

Finding Text

2025-001 – Communications with Subrecipients Finding Type: Significant Deficiency in internal control over compliance / noncompliance Program: ALN 93.788 – State Opioid Response Criteria: As required by 2 CFR 200.332, the pass-through entity must communicate specific information to subrecipients, as applicable. Condition: Contracts with subrecipients did not include portions of required disclosures. Cause/Effect: Inadequate internal controls over compliance. Select contracts were not in compliance with 2 CFR 200.332. Questioned Cost: None. Recommendation: We recommend that the PIHP update all contracts with subrecipients to include required language. View of Responsible Official: Management is in agreement with this recommendation.

Corrective Action Plan

June 12, 2026 Response to Single Audit Finding 2025-001 Finding: Program: ALN 93.788 – State Opioid Response Criteria: As required by 2 CFR 200.332, the pass-through entity must communicate specific information to subrecipients, as applicable. Condition: Contracts with subrecipients did not include portions of required disclosures. Cause/Effect: Inadequate internal controls over compliance. Select contracts were not in compliance with 2 CFR 200.332. Management agrees with this finding and has already implemented measures to ensure that it is not repeated. The additional step of having the Finance Department review contracts with federal dollars to ensure that the ALN in the contract is consistent with the ALN on the contract award. This policy is in place as of June 12, 2026. Matt Berg is responsible for implementing this corrective action.

Categories

Subrecipient Monitoring Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.788 OPIOID STR $2.10M
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $294,669
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $175,968
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $90,514