Finding Text
Assistance Listing Number(s): 93.959
Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse
Assistance Listing Number(s): 93.788
Name of Federal Program or Cluster: State Targeted Response to the Opioid Crisis Grants
Name of Federal Agency: Department of Health and Human Services
Criteria or Specific Requirement: Non-Federal entities must minimize the time elapsing between the transfer of funds from the U.S. Treasury or pass-through entity and disbursement by the non-Federal entity for direct program or project costs and the proportionate share of allowable indirect costs (2 CFR section 200.305(b)).
Condition and Context: The balance of refundable advances was not reconciled during the fiscal period, which should have informed the process for matching funding with expenses and the calculation of amounts requested to draw for contract expenses.
Cause: Routines and habits lapsed during the changes in operations, staffing and management. Changes in key management positions has reduced the institutional knowledge and experience in this area.
Effect or Potential Effect: Grant funding for reimbursement of expenses are not supported in the contract period and funds might be required to be returned to grantors.
Repeat Finding: No
Recommendation: For each contract, ARC must reconcile refundable advances routinely and in coordination with the recognition and allocation of allowable costs and to inform the determination of draw request amounts. While this did not occur during the year ended June 30, 2022, steps have been taken to reconcile all accounts subsequent to the report date.
Views of Responsible Officials: A formalized and monitored process was implemented to reconcile refundable advances routinely and in coordination with the recognition and allocation of allowable costs effective August of 2023.