Finding 376054 (2023-001)

Finding 2023-01 – No Written Policies or Procedures, or Standards of Conduct Relative to Federal Awards. Criteria – Written policies, procedures, or standards of conduct relative to federal awards are required by 2 U.S. Code of Federal Regulations (CFR) Part 200: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subparts D and E (Sections 2 CFR 200.300 and 200.400, respectively.) Condition – Mental Health America of Northern Kentucky and Southwest Ohio does not have formalized written policies, procedures, or standards of conduct relative to federal awards. Potential Effect – Effective and consistent internal control over compliance relative to federal awards cannot be maintained and monitored without written policies, procedures or standards of conduct. Recommendation – Mental Health America of Northern Kentucky and Southwest Ohio should prepare written policies, procedures, or standards of conduct that document internal controls necessary to ensure compliance over the expenditure of federal awards. Management’s Response – Mental Health America of Northern Kentucky and Southwest Ohio has modified existing written policies and procedures to ensure effective and consistent internal control over documentation compliance relative to the expenditure of federal awards.