Finding: 2022-001 Considered a significant deficiency in internal control/immaterial non-compliance. Program: ALN 93.959 Block Grants for Prevention and Treatment of Substance Abuse (Treatment) Criteria: As detailed by 2 CFR 200.402, the total cost of a Federal award is the sum of the allowable direct and allocable indirect costs less any applicable credits. Condition: During testing of amounts charged to the grants it was noted that provider stabilization payments were charged to the Treatment grant but were not authorized by the grants. Cause/Effect: This condition appears to be the result of a misunderstanding of costs allowed under this grant. These costs were not in compliance with 2 CFR 200.402. Questioned Cost: $199,598 Recommendation: We recommend that the Entity review all grant agreements to gain a thorough understanding of allowable costs and then establish/modify internal controls to assure that only allowable costs are charged to the grant View of Responsible Official: Management is in agreement with this recommendation. Corrective Action Plan: SWMBH's provider stability committee will review SWMBH's COVlD-19 Provider Stability plan. Along with the review of the plan, SWMBH will fully understand and execute request in accordance with the SWMBH COVlD-19 Provider Stability plan. Payments of an approved provider stability request will only be funded by Medicaid and Healthy Michigan. Responsible Party: Garyl L. Guidry Jr., MBA Chief Financial Officer Date of completion: August 1, 2023