Finding 572070 (2024-002)

Item: 2024-002 Assistance Listing Number: 93.958 Programs: Block Grants for Community Mental Health Services Federal Agency: U.S. Department of Health and Human Services Pass-Through Agencies: Mercy Care Pass-Through Grantor Identifying Number: Unknown Award Year: October 1, 2023 to September 30, 2024 Compliance Requirement: Reporting Criteria: In accordance with the grant agreements the Organization is required to submit quarterly funding and expense reports to the grantor within 30 days after quarter end. Condition: For all 4 quarterly reports, the reports were submitted to the grantor subsequent to 30 days after quarter end. Questioned Costs: N/A Context: In the population of 4 required quarterly reports, we tested all 4 reports noting that all 4 required quarterly reports were not submitted to the granting agency timely. This is deemed to be a material weakness in internal control over compliance. Effect: The system of internal controls was not properly implemented to ensure the completion and submission of reports in a timely manner. Cause: Controls to ensure completion and submission of required reports to the granting agency were not operating effectively. Identification as a Repeat Finding: Not a repeat finding Recommendation: The Organization should enhance its existing controls to ensure the completion and submission of all required reporting in a timely manner. Views of Responsible Officials: Management of Resilient Health, Inc. and Subsidiary concurs with the finding. See Corrective Action Plan.