Finding Text
Federal Agency: Department of Health and Human Services
Federal Program Name: Substance Abuse and Mental Health Services Projects of Regional and
National Significance
Assistance Listing Number: 93.243
Federal Award Identification Number and Year: 1H79SM087513-01 - 2024
Award Period: September 30, 2023 through September 29, 2027
Type of Finding:
• Significant Deficiency in Internal Control over Compliance and Other Matters
Criteria or specific requirement: Under 2 CRF 200.406, credits accruing to or received by the
recipient of federal funding that relate to allowable costs must be credited to the Federal award as
either a cost reduction or cash refund.
Condition: During our testing, we noted the Organization received reimbursement for the full amount of
an expenditure, which included sales tax which they received a reimbursement for from the State.
Questioned costs: None
Context: During our testing of 29 samples, we noted 1 item for a $96 expenditure that incorrectly
charged sales tax of $6.30 to the grant. Extrapolated to the entire population, an estimated $8.86 of
expenditures would be incorrectly applied to the grant. Management has asserted this is the only
instance of this issue.
Cause: The Organization did not have adequate internal controls designed to properly determine the
appropriate amounts to be submitted for reimbursement.
Effect: Noncompliance with the federal requirements around the determination of an eligible
expenditure.
Recommendation: We recommend the Organization review the expenditures submitted to SAMHSA
and ensure that there is no "double dipping' of sales taxes.
Views of responsible officials: There is no disagreement with the audit finding..