Finding 524149 (2024-002)

Federal agency: U.S. Department of Health and Human Services Federal program title: Block Grants for Community Mental Health Services Assistance Listing Number: 93.958 Pass-Through Agency: n/a Pass-Through Number(s): n/a Award Period: 9/30/2021-9/29/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Code of Federal Regulations (CFR) § 200.77 of the Uniform Guidance defines "period of performance" as the time during which the non-Federal entity (grantee) may incur new obligations to carry out the work authorized under the Federal award. The Federal awarding agency must include start and end dates of the period of performance in the Federal award. Condition: Expenses incurred in fiscal year 2023 were included as expenses to the federal program in fiscal year 2024. Questioned costs: $271 Context: For 5 of the 24 transactions selected for performance period beginning dates testing, the disbursements charged to the grant were for expenses incurred in fiscal year 2023 instead of fiscal year 2024. Cause: Error by management in incurring expenses to the correct grant year. Effect: If expense for the incorrect period is charged to the grant, it could result in unallowable costs being charged to federal grants. Repeat Finding: N/A Recommendation: We recommend the organization enhance its internal controls to ensure expenses for the correct grant period are charged to the federal program. Views of responsible officials: Management will enhance its internal controls to ensure expenses for the correct grant are charged to the federal program properly.