Finding Text
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Certified Community Behavioral Health Clinic Expansion Grants Assistance Listing Numbers: 93.696 Federal Award Identification Number and Year: 5H79SM086813-02 (2024) Award Period: September 30, 2022 through September 29, 2026 Type of Finding: Material Weakness in Internal Control over Compliance- Cash Management Criteria: Drawdowns need to be reviewed and approved before submission. This process is vital in order to ensure proper controls are in place to mitigate any misstatements from entering into the financial statements. Condition: During our testing of cash management drawdowns, it was noted that drawdowns were not being approved internally before submission. This led to an overdrawing of funds during the year. However, as of year-end there were more expenses incurred than funds drawn down. Context: It was noted through testing of 2 cash management drawdowns that all drawdowns tested did not have proper approvals or reviews noted before submission. Cause: Lack of internal control process Effect: Lack of review and approval before submission can lead to misstatements in the financial statements and incorrect use of federal awards. Repeat Finding: No Recommendation: We recommend that management ensure that all drawdowns are reviewed and approved before submission. Views of Responsible Officials: Please refer to NorthEast Treatment Centers, Inc.’s Corrective Action Plan.