Finding 32587 (2022-001)

U.S. Department of Health and Human Services, CCBHC Planning, Development and Implementation Grant ? Assistance Listing Number 93.696 according to 45 CFR ? 75, and the HHS Grants Policy Statement Criteria: Costs incurred outside the budget period are not allowed under the grant. Certain costs incurred prior to the budget period were included in costs which were reimbursed during the year ended December 31, 2022. Condition: Out of five expenses sampled, two invoices included costs incurred prior to the budget period. Cause: Fraser and Affiliate did not remove costs from certain invoices which were incurred prior to the budget period when determining allowable costs under the grant. Questioned Costs: $60,419.54 - out of $265,177.33 of sampled costs tested, $60,419.54 were noted as costs being incurred prior to the budget period. Effect: Monitoring procedures in place were not effective in ensuring only costs incurred during the budget period were submitted for reimbursement. Recommendation: Fraser and Affiliate should implement controls to ensure only costs incurred during the budget period are submitted for reimbursement. Views of Responsible Officials and Planned Corrective Actions: Management concurs with the finding and recommendation. Management will implement an additional review step to evaluate the timing of when such costs are incurred in order to meet the grant requirements. Fraser and Affiliate will also ensure the reimbursement of the unallowed costs will be remediated by reducing amounts reimbursed during 2023.