Finding Text
Criteria: The Substance Abuse and Mental Health Projects of Regional and National Significance program provides grants that cover multiple fiscal years; however, the funds are awarded on a 12-month budget period. Unused funds can be carried over between periods, though the program requires the Federal Financial Report (SF-425) be submitted 90 days after the end of each 12-month period. Condition: During our audit, we noted that CRMHS recorded a liability of $98,902 for disallowed carryover amounts drawn from the Substance Abuse and Mental Health Projects of Regional and National Significance program. Effect: CRMHS drew down carryover funds of $98,902 during the fiscal year ended June 30, 2022, that it was not entitled to request. Cause: CRMHS did not timely file a form SF-425 as required by the Substance Abuse and Mental Health Projects of Regional and National Significance program. This disallowed the carryover of remaining funding into the 2023 fiscal year; however, CRMHS had not documented this occurrence and due to employee turnover, the funds were included in draw requests during the 2022 fiscal year. Recommendation: We recommend that management design and implement procedures that allow for and ensure the timely submission of the required reports and identification of allowable carryover of unused funds from prior grant periods. View of responsible officials: Management agrees with the finding and has implemented procedures that will prevent late submission of required reports and identifies unallowable funds forfeited during prior periods.