Finding 382361 (2022-003)

Item: 2022-003 Assistance Listing Number: 93.498 Program: COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Agency: U.S. Department of Health and Human Services Award Year: Period 2 Funds – Period of Availability January 1, 2020 – December 31, 2021 Compliance Requirement: Activities allowed or unallowed Criteria or Specific Requirement: Management is responsible for Standards for Documentation that should be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: Management did not retain proper documentation of the review and approval of certain allowable expenses. Cause: Touchstone Behavioral Health d/b/a Touchstone Health Services did not have adequate internal controls in place to ensure sufficient documentation of the proper review and approval of expenses to the program was maintained. Effect: Management was not able to support that certain expenses were reviewed and approved. This is deemed to be a material weakness in internal control over compliance. Questioned costs: n/a Context: We conducted a non-statistical sample of 17 non-payroll and 40 payroll related expenditures and noted 13 of the non-payroll and 8 of the payroll selections lacked proper documentation of management review and approval. Identification as a Repeat Finding: Not a repeat finding. Recommendation: Management should implement internal controls to ensure documentation is retained to support that expenses are properly reviewed and approved. Views of Responsible Officials: Management of Touchstone Behavioral Health d/b/a Touchstone Health Services concurs with the finding. See Corrective Action Plan.