Finding 395826 (2023-002)

National Council for Behavioral Health (d/b/a National Council for Mental Wellbeing) Corrective Action Plan Department of Health and Human Services The National Council for Mental Wellbeing respectfully submits the following corrective action plan for the year ended September 30, 2023. Name and address of independent public accounting firm: Marcum LLP 1899 L Street NW Suite 850 Washington DC 20036 The finding from the September 30, 2023, schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Finding No. 2023-002: Inadequate Review of Subsidiary Ledger – Material Weakness Recommendation We recommend that the Council enhance its internal control over reconciliation and review to ensure that its subsidiary ledgers only include proper and valid transactions. Management’s Response: When uncashed checks were reissued in the previous accounting system, there were occurrences that we did not fully complete a second step needed to void these checks. This resulted in recording duplicate expense and accounts payable in these occurrences. The error was not discovered due to the subsidiary ledger not being fully scanned for content by preparers and reviewers in the previous system. For our ongoing financial reconciliation process, several internal controls are already in place to catch such errors. One, this two-step error is no longer possible in our new accounting system that when live on October 1, 2022. Two, a continuation of ongoing comprehensive reconciliations of all balance sheet accounts, to include accounts payable, a proper segregation of duties, where staff/senior accountants prepare reconciliations and accounting management reviews. Going forward the preparers and reviewers procedure is to fully review the contents of the accounts payable subsidiary ledger just the same as we do with every other balance sheet account. Regarding the monies owed on closed federal awards, staff are currently reaching out to those federal project officials to facilitate reimbursement. Contact Person Responsible for Corrective Action: Jonathan Hutchins Expected Completion Date: 5/31/2024