Finding 588680 (2022-001)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-04-02
Audit: 16428
Auditor: Adamsbrown LLC

AI Summary

  • Core Issue: Unallowable staff meals were charged to federal grant programs, violating compliance requirements.
  • Impacted Requirements: Funding restrictions state that meals are unallowable unless specified in the grant announcement.
  • Recommended Follow-Up: Review and update policies to prevent unallowable expenses from being charged to federal grants.

Finding Text

SIGNIFICANT DEFICIENCY 2022-001 Federal programs Block Grants for Community Mental Health Services ? 93.958 and Section 223 Demonstration Programs to Improve Community Mental Health Services ? 93.829 Compliance requirements Activities allowed or unallowed, allowable costs/cost principles Criteria or specific requirement Per Appendix I ? Standard Funding Restrictions ? of the SMHSA grants? Funding Opportunity Announcement, meals are generally unallowable unless they are an integral part of a conference grant or specifically stated as an allowable expense in the FOA. Condition During testing, we identified unallowable staff meals that were paid with grant funding. One such transaction was identified out of the sample tested for the Section 223 Demonstration Programs to Improve Community Mental Health Services, and it totaled to $11. Another such transaction was identified out of the sample tested for the Block Grants for Community Mental Health Services, and it totaled to $25. Context Total identified staff meal costs are $1,440 for Section 223 Demonstration Programs to Improve Community Mental Health Services and $829 for Block Grants for Community Mental Health Services. Cause Staff members were not aware that meal costs were considered unallowable under the programs. Effect Unallowable expenses were reimbursed under the programs. Recommendation We recommend that High Plains Mental Health Center review its policies to ensure that unallowable expenses are not expensed under federal grant programs. Views of responsible officials See Corrective Action Plan.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 12237 2022-001
    Significant Deficiency
  • 12238 2022-001
    Significant Deficiency
  • 588679 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.958 Block Grants for Community Mental Health Services $1.52M
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $1.45M
93.498 Provider Relief Fund $406,211
93.997 Assisted Outpatient Treatment $81,125