Finding Text
ALN 93.958 Block Grants for Community Mental Health Services
Pass-through Entity Identification Number GRK 213195
U.S. Department of Health and Human Services
Minnesota Department of Human Services
Finding 2022-004
Allowable Costs/Costs Principles
Material Weakness
Criteria: OMB’s Uniform Guidance requires nonfederal entities to establish and maintain effective internal control over federal awards that provides reasonable assurance that the awards are being managed in compliance with federal statutes, regulations, and the terms and conditions of the federal award, and permit the preparation of reliable financial statements and Federal Reports.
Condition: The Organization did not design, document, and implement a system of internal control over compliance that meets the requirements of OMB Uniform Guidance.
Cause: Organization’s staff did not receive training on OMB Uniform Guidance guidelines specific to internal control over compliance.
Effect or Potential Effect: There is no system in place that would prevent an unallowable cost from being charged to a federal grant.
Questioned Costs: Unknown
Repeat Finding: N/A
Recommendation: The Organization’s staff should obtain additional training on Uniform Guidance and federal grant management and create a system of internal control over compliance.
Views of Responsible Officials: African American Child Wellness Institute, Inc. is in agreement with the audit finding.