Finding Text
Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles and Audit Requirements for Fede December 31, 2023.ral Awards require compliance with federal and state contracts. The Organization’s standard SAMH service provider contract, Big Bend Community Based Care, Inc. d/b/a NWF Health Network, required the Form CF-MH 1037 to be submitted by December 31, 2023. Condition: During the audit, Form CF-MH 1037 Reconciliation Report for the fiscal year ending on June 30, 2023, was not timely available. It was noted that the form had not yet been sent to the grantor agency by the deadline of December 31, 2023. Cause: Recent turnover in finance personnel within the Organization and an inadequate control system in place prevented the Organization from accurately tracking and reporting grant expenditures in a timely manner. The Organization is also having a single audit for the first time and did not have all control systems in place before the reporting deadline. Effect: The Organization was listed as non-compliant on the grant confirmation as the required reports were not submitted before the deadline. Late filings of reports may jeopardize the organization's eligibility for future funding, potentially impacting its ability to fulfill its mission and objectives. Questioned Costs: None noted. Context: The organization failed to submit required reports within the timeframe outlined in the grant agreement, resulting in non-compliance with the grant. Repeat Finding from Prior Year: No Recommendation: We recommend implementing a comprehensive framework for
monitoring grant compliance, including clear procedures and responsibilities for tracking reporting deadlines and ensuring timely submissions. Views of Responsible Officials: Management is in agreement and will implement procedures
to meet reporting deadlines.