EIN: 042632219
UEI: PC6GM9GNWJB7
042180222, 043002220, 043233283, 043259610, 043546321, 061569439, 223215740, 300162655, 300162656, 311740060, 311758843 · unlinked EINs have no separate FAC filing
Audited by: RSM US LLP
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 16, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by July 16, 2026 (45 days ago).
What is a management decision? →FAC accepted this audit on December 12, 2024 — management decision was due June 12, 2025.
FAC accepted this audit on January 2, 2024 — management decision was due July 2, 2024.
FAC accepted this audit on February 26, 2023 — management decision was due August 26, 2023.
The required allowable cost sample size included 60 payroll expense selections and 25 other/general expenditure selections. Of that sample size, 5 other/general expenditure selections that were charged to the program were not allowable expenses under the program. Cause: The individual?s involved in the Organization?s internal control process did not have the appropriate understanding of the allowable costs charged to the program, which allowed a clerical error charging unallowable expenditures to the program to not be detected and corrected. Effect: Unallowable costs were charged to the program. Improper reporting could result in the HHS withholding payments or recouping payments to the Organization. Questioned Costs: $29,034 which consisted of 5 general expenditure transactions that were charged to the program that were not allowable under the program. Upon further investigation by management, additional unallowable expenditures totaling $21,968 were charged to the program during the year ended June 30, 2022. Context: 5 of 85 expenditure expense selections tested were determined to be unallowable. All of the expenditures identified as errors, including the additional expenditures identified by management were the same type of expense. Recommendation: We recommend the Organization implement additional trainings for management and operations staff working on the program to ensure a thorough understanding of the program and the related allowable costs and that management implement additional control procedures for the review the allowability of expenses charged to the program. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See accompanying Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding No. 2022-002: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Health and Human Services (HHS) Program: ALN: 93.829, Section 223 Demonstration Programs to Improve Community Mental Health Services Criteria: Program requirements state that only allowable expenses to support the program can be expended to the program under the grant. Condition: The required allowable cost sample size included 60 payroll expense selections and 25 other/general expenditure selections. Of that sample size, 5 other/general expenditure selections that were charged to the program were not allowable expenses under the program. Cause: The individual?s involved in the Organization?s internal control process did not have the appropriate understanding of the allowable costs charged to the program, which allowed a clerical error charging unallowable expenditures to the program to not be detected and corrected. Effect: Unallowable costs were charged to the program. Improper reporting could result in the HHS withholding payments or recouping payments to the Organization. Questioned Costs: $29,034 which consisted of 5 general expenditure transactions that were charged to the program that were not allowable under the program. Upon further investigation by management, additional unallowable expenditures totaling $21,968 were charged to the program during the year ended June 30, 2022. Context: 5 of 85 expenditure expense selections tested were determined to be unallowable. All of the expenditures identified as errors, including the additional expenditures identified by management were the same type of expense. Recommendation: We recommend the Organization implement additional trainings for management and operations staff working on the program to ensure a thorough understanding of the program and the related allowable costs and that management implement additional control procedures for the review the allowability of expenses charged to the program. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See accompanying Corrective Action Plan.
The Organization will contact the affected federal agency for guidance on resolution of the billing errors. Additionally, the Organization will train management and staff working on the program to ensure an understanding of the program and its allowable costs. Furthermore, staff will be trained to review expenses throughout the year to ensure only allowable expenses are charged to the program. The review of expenses charged to the program will be performed by someone independent from the staff responsible for coding the expenses. The contact person for this corrective action is Annette Kovamees, VP of Revenue and Financial Operations.
The Organization utilized an internal general and administrative allocation percentage to charge indirect expenses to the program instead of the ten percent de minimus rate elected to be used by the Organization and allowed under the program. Cause: An error in the determination of the amount of indirect costs to be charged to the program was made and an appropriate review of the program billings was not performed by a member of management. Effect: Excess indirect costs were charged to the program. Improper reporting could result in the HHS withholding payments or recouping payments to the Organization. Questioned Costs: $47,736 was the total calculated amount that was over charged to the program by using the Organization?s internal general and administrative allocation rather than the ten percent de minimus rate during the year ended June 30, 2022. Context: Indirect expenses charged to the program were in excess allowable costs using the ten percent de minimus rate. Recommendation: We recommend the Organization implement additional trainings for management and operations staff working on the program to ensure a thorough understanding of the program and the related allowable costs and that management implement additional control procedures for the review of the allowability of expenses charged to the program. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See accompanying Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding No. 2022-003: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Health and Human Services (HHS) Program: ALN: 93.829, Section 223 Demonstration Programs to Improve Community Mental Health Services Criteria: Program requirements state that only allowable indirect expenses to support the program can be charged to the program under the grant. Condition: The Organization utilized an internal general and administrative allocation percentage to charge indirect expenses to the program instead of the ten percent de minimus rate elected to be used by the Organization and allowed under the program. Cause: An error in the determination of the amount of indirect costs to be charged to the program was made and an appropriate review of the program billings was not performed by a member of management. Effect: Excess indirect costs were charged to the program. Improper reporting could result in the HHS withholding payments or recouping payments to the Organization. Questioned Costs: $47,736 was the total calculated amount that was over charged to the program by using the Organization?s internal general and administrative allocation rather than the ten percent de minimus rate during the year ended June 30, 2022. Context: Indirect expenses charged to the program were in excess allowable costs using the ten percent de minimus rate. Recommendation: We recommend the Organization implement additional trainings for management and operations staff working on the program to ensure a thorough understanding of the program and the related allowable costs and that management implement additional control procedures for the review of the allowability of expenses charged to the program. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See accompanying Corrective Action Plan.
The Organization will contact the affected federal agency for guidance on resolution of the billing error. Additionally, the Organization will train management and staff working on the program to ensure an understanding of the program and its allowable costs. Furthermore, management and staff will be trained to review expenses throughout the year to ensure only allowable expenses are charged to the program. The review will include confirming that costs charged to the program are in conformity with any allowable cost elections. The contact person for this corrective action is Annette Kovamees, VP of Revenue and Financial Operations
FAC accepted this audit on February 17, 2022 — management decision was due August 17, 2022.
FAC accepted this audit on February 21, 2021 — management decision was due August 21, 2021.
FAC accepted this audit on November 19, 2019 — management decision was due May 19, 2020.
FAC accepted this audit on December 12, 2018 — management decision was due June 12, 2019.
FAC accepted this audit on December 6, 2017 — management decision was due June 6, 2018.
GSA_MIGRATION
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GSA_MIGRATION
2016-001
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GSA_MIGRATION
FAC accepted this audit on February 7, 2017 — management decision was due August 7, 2017.
GSA_MIGRATION
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GSA_MIGRATION
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