Finding 392910 (2022-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-04-10

AI Summary

  • Core Issue: Range Mental Health Center missed deadlines for submitting its audit reporting package to the Federal Audit Clearinghouse.
  • Impacted Requirements: Noncompliance with 2 CFR 200.328 and 2 CFR 200.512(a) regarding timely financial reporting.
  • Recommended Follow-Up: Implement stronger internal controls and procedures to ensure timely readiness of financial data for audits.

Finding Text

2022-001: Late Filing of the Data Collection Form All Federal programs included in the Schedule of Expenditures of Federal Awards Compliance Findings: Other (P) Condition: Range Mental Health Center, Inc. and Subsidiary did not submit its single audit reporting package to the Federal Audit Clearinghouse within the required time frame. Criteria: 2 CFR 200.328 establishes requirements for financial grant reporting by a nonfederal entity. The Organization must report financial information as required by the terms and conditions of the federal award. 2 CFR 200.512(a) requires the audit reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from the auditors or nine months after the end of the audit period. Cause: Employee turnover in the finance department resulted in financial and program data not being ready for the financial and single audits on a timely basis. Effect: The Organization is not in compliance with timely reporting requirements. Questioned Costs: $0 Context: Range Mental Health Center, Inc. and Subsidiary did not submit its year ended December 31, 2021 audit reporting package to the Federal Audit Clearinghouse until April 4, 2023, and did not meet the nine month reporting requirement for the year ended December 31, 2022. Recommendation: We recommend Range Mental Health Center, Inc. and Subsidiary continue efforts to develop internal control policies and procedures over financial activities to ensure that its financial and program data is ready for the financial and single audits on a timely basis. Views of Responsible Officials and Planned Corrective Actions: We agree with this finding and have outsosurced its CFO function to improve the timeliness of financial activities. Additional details can be found in the Organization’s Corrective Action Plan.

Corrective Action Plan

Action Taken: During 2023, Range Mental Health Center, Inc. and Subsidiaries had experienced turnover in key financial functions. In addition, we were notified that current independent audit firm would no longer be performing the 2023 financial and single audits. In response to this we have outsourced its CFO function. We have also engaged a new independent audit firm, as this was a first-year audit there was an acclimation period delaying many processes. As a result, we anticipate an improvement in timeliness of our financial records.

Categories

Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 392911 2022-002
    Material Weakness
  • 392912 2022-001
    Material Weakness Repeat
  • 392913 2022-002
    Material Weakness
  • 392914 2022-001
    Material Weakness Repeat
  • 392915 2022-002
    Material Weakness
  • 392916 2022-001
    Material Weakness Repeat
  • 392917 2022-002
    Material Weakness
  • 392918 2022-001
    Material Weakness Repeat
  • 392919 2022-002
    Material Weakness
  • 392920 2022-001
    Material Weakness Repeat
  • 392921 2022-002
    Material Weakness
  • 392922 2022-005
    Significant Deficiency
  • 392923 2022-001
    Material Weakness Repeat
  • 392924 2022-002
    Material Weakness
  • 392925 2022-003
    Material Weakness
  • 392926 2022-004
    Significant Deficiency
  • 969352 2022-001
    Material Weakness Repeat
  • 969353 2022-002
    Material Weakness
  • 969354 2022-001
    Material Weakness Repeat
  • 969355 2022-002
    Material Weakness
  • 969356 2022-001
    Material Weakness Repeat
  • 969357 2022-002
    Material Weakness
  • 969358 2022-001
    Material Weakness Repeat
  • 969359 2022-002
    Material Weakness
  • 969360 2022-001
    Material Weakness Repeat
  • 969361 2022-002
    Material Weakness
  • 969362 2022-001
    Material Weakness Repeat
  • 969363 2022-002
    Material Weakness
  • 969364 2022-005
    Significant Deficiency
  • 969365 2022-001
    Material Weakness Repeat
  • 969366 2022-002
    Material Weakness
  • 969367 2022-003
    Material Weakness
  • 969368 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $1.15M
93.498 Provider Relief Fund $987,669
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $240,996
14.267 Continuum of Care Program $225,380