Finding 45259 (2022-001)

2022-001: Considered a significant deficiency in internal control/immaterial non-compliance Program: ALN 93.959 Block Grants for Prevention and Treatment of Substance Abuse (Treatment and Access Management; Women?s Specialty Services) Criteria: As detailed by 2 CFR 200.402, the total cost of a Federal award is the sum of the allowable direct and allocable indirect costs less any applicable credits. Condition: During testing of amounts charged to the grants it was noted that provider stabilization payments were charged to the Treatment and Women?s Specialty Services grants but were not authorized by the grants. Cause/Effect: This condition appears to be the result of a misunderstanding of costs allowed under this grant. These costs were not in compliance with 2 CFR 200.402. Questioned Cost: $289,629 (Treatment and Access Management: $275,928, Women?s Specialty Services: $13,701). Recommendation: We recommend that the Entity review all grant agreements to gain a thorough understanding of allowable costs and then establish/modify internal controls to assure that only allowable costs are charged to the grant. View of Responsible Official: Management is in agreement with this recommendation