Finding 391019 (2023-001)

Finding 2023-001 – Reporting Name of Federal Agency: U.S. Department of Health and Human Services Federal Program Name and Assistance Listing Number: Block Grants for Community Mental Health Services under ALN 93.958 Federal Award Identification Number and Year: H79SM085689, 2021-2023 Criteria Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Pub. L. No. 110-252, hereafter referred as the “Transparency Act” that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). In accordance with OMB Memorandum M-20-21, Implementation Guidance for Supplementing Funding Provided in Response to the Coronavirus Disease 2019 (COVID-19), existing Transparency Act subaward reporting requirements may be leveraged to meet the transparency requirements outlined in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Condition It was noted that the Center did not report their first-tier subawards to FSRS (Federal Funding Accountability and Transparency Act Subaward Reporting System) in fiscal year 2023. Cause Management was not aware of this reporting requirement. Effect The Center is not in compliance with federal regulations regarding reporting in fiscal year 2023. Questioned Costs None Context A total of $455,967 was awarded to subrecipients during the year ended June 30, 2023, and one of the subrecipients, University of Rhode Island, received more than $30,000. It was noted that the Center failed to report this to FSRS. Identification as a Repeat Finding Not a repeat finding. Recommendation We recommend that the Center strengthen their system of internal controls to ensure that all reporting is consistent with requirements and instructions as provided by regulatory agencies. Views of Responsible Officials Management agrees with the audit finding and will strengthen internal controls and accountability to correct the deficiency.