Finding Text
Finding: 2024-009. Closeout Procedures and Reporting. Federal Program - Section 223 Demonstration Programs to Improve Community Mental Health Services. Federal Financial Assistance Listing - 93.829. Federal Award Number - H79SM085287. Federal Agency - Department of Health and Human Services. Pass-through Entity - Substance Abuse and Mental Health Services Administration (SAMHSA). Special Test - Closeout Procedures. Significant Deficiency in Internal Control over Compliance. Criteria: Uniform Guidance (2 CFR 200.344) establishes requirements for grantees to meet closeout terms and conditions listed in the notice of award. The notice of award included a requirement for a final progress report to be submitted as part of closeout procedures. Condition: Hope was unable to provide support of timely completing the closeout procedures required under SAMHSA's Notice of Award in compliance with 2 CFR 200.344 for closeout terms and conditions to accurately and timely report within 120 days after the project period (August 31, 2023). Cause: Management did not maintain controls to ensure that record retention was maintained for the required compliance period defined in the notice of award. Effect or Potential Effect: SAMHSA data collection was not complete for Hope's expenditures under the notice of award with pass-through agency. Questioned Costs: None. Context: Closeout requirements include reconciliation of financial expenditures to reported disbursements, which was not able to be supported. Hope supported submission of the Final Federal Financial Report (SF-425); however, the corresponding Final Progress Report was not able to be supported. Repeat Finding from Prior Year: No. Recommendation: Management may consider implementing specific retention policies and controls to ensure all required close-out reporting requirements are timely completed and to ensure retention of evidence of completion in accordance with the 2 CFR 200.344. Views of Responsible Officials: Management's response is included in the corrective action plan