Finding Text
U.S. Department of Health and Human Services Federal Financial Assistance Listing Number 93.696, 1H79SM088927-01, September 29, 2024 and September 29, 2025 Certified Community Behavioral Health Clinic Expansion Grants Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance Material Weakness in Internal Control over Compliance and Noncompliance Criteria The OMB Compliance Supplement requires that non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Condition During our testing, not all expenditures allocated to the federal program had documentation of review and approval. In addition, an expenditure was determined to be unallowed. Cause The Organization did not have an adequate internal control policy to ensure review and approval of expenditures and the allocation of expenditures to the federal program was documented and all expenditures were allowed. Effect The lack of adequate policies governing the recording of expenditures to the program increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs $73,600 Context/Sampling A nonstatistical sample of 60 direct expenditures and two indirect expenditures submitted for reimbursement were selected for testing. Of these 62, 54 did not show evidence of proper review and approval prior to being allocated to the federal program and one was determined to be unallowed. Repeat Finding from Prior Year(s) Yes, prior year finding 2024-006 Recommendation We recommend that the Organization enhance internal control policies to ensure all expenditures are reviewed and approved prior to payment to ensure that all payments are necessary for the program and correct. Views of Responsible Individuals Management agrees with the finding.