FAC Explorer

Finding 977683 (2023-002)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-06-19
Audit: 309232
Organization: Healthwest (MI)
Auditor: Roslund Prestage & Company PC

AI Summary

  • Core Issue: Indirect costs were overcharged for the SUD Block Grant due to incorrect calculation methods.
  • Impacted Requirements: Compliance with 2 CFR 200.309 regarding allowable costs for Federal awards was not fully met.
  • Recommended Follow-up: CMHSP should review and adjust its indirect cost application methods for grants.

Finding Text

2023-002 OVERCHARGE OF INDIRECT COSTS Type: Considered a significant deficiency in internal control over compliance/immaterial noncompliance Program: ALN 93.959 Block Grants for Prevention and Treatment of Substance Abuse (SUD Block Grant) Criteria: As detailed by 2 CFR 200.309, “A non-Federal CMHSP may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through CMHSP made the Federal award that were authorized by the Federal awarding agency or pass-through CMHSP.”. Condition: During testing, it was noted that indirect costs were overcharged for ALN 93.959 by an immaterial amount. Cause/Effect: This condition was the result of requesting indirect costs based on 1/12th of the budgeted indirect costs each month instead of requesting a percentage of direct costs each month. Questioned Cost: Immaterial Recommendation: We recommend that the CMHSP review its methods for applying indirect costs to grants. Management’s Resp: Management is in agreement with this recommendation.

Categories

Allowable Costs / Cost Principles Period of Performance Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 401239 2023-001
    Significant Deficiency Repeat
  • 401240 2023-001
    Significant Deficiency Repeat
  • 401241 2023-002
    Significant Deficiency
  • 977681 2023-001
    Significant Deficiency Repeat
  • 977682 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $892,495
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $809,843
93.788 Opioid Str $717,462
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $138,678
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $126,130
93.778 Medical Assistance Program $87,387
93.959 Block Grants for Prevention and Treatment of Substance Abuse $79,140
93.575 Child Care and Development Block Grant $77,604
14.235 Supportive Housing Program $30,834
93.958 Block Grants for Community Mental Health Services $20,706