Finding 982141 (2023-002)

Finding 2023-002 Significant deficiency in internal controls and noncompliance over written policies required by the Uniform Guidance. Federal Agency: Department of Health and Human Services Program Title: Section 223 Demonstration Programs to Improve Community Mental Health Services Assistance Listing Number: 93.829 Award Numbers: 21SM85247A; 1H79SM085247-01 Award Period: August 31, 2021 - August 30, 2022; August 31, 2022 - August 30, 2023 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) (as codified by the Department of Health and Human Services [DHHS] in 45 CFR 75) requires a non-federal entity that has expended federal awards to have written policies pertaining to its federal grants for payments, procurement, allowable costs charged to federal programs, and compensation. Condition/Context for Evaluation The Organization has processes and written policies, however, there are no formal written policies and procedures that specifically cover the criteria requirements under the Uniform Guidance. Cause This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance due to the new federal funding received in late 2020 through 2022. Effect or Potential Effect As a result of this condition, the Organization can potentially not comply with criteria requirements under the Uniform Guidance. Questioned Costs Not applicable. Repeat Finding Yes. 2022-001 Recommendation We recommend that the Organization create written policies in accordance with and required by the Uniform Guidance. Views of Responsible Officials Management concurs with the finding and has provided the accompanying corrective action plan.