EIN: 061308487
UEI: T4AMGKLWF7L4
Data as of August 19, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on June 4, 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 December 4, 2026 (106 days from today).
What is a management decision? →Federal Agency: Department of Health and Human Services Federal Program Name: Block Grants for Prevention and Treatment of Substance Abuse Federal Assistance Listing Number: 93.959 Pass-Through Agency: State of Connecticut Department of Mental Health and Addiction Services Award Period: 3/1/2023-8/31/2025 Type of Finding: Allowable Costs/Cost Principles – Cutoff Criteria or Specific Requirement: The Office of Management and Budget (OMB) Cost Principles and Uniform Guidance require expenditures charged to federal awards to be recorded in accordance with applicable cost standards and the entity’s cost allocation policies, including proper expenditure cutoff and reporting within the applicable grant period. Condition: Of the twenty-five expenditures tested, one exception was identified related to improper cutoff timing for reporting the expenditure. Questioned Costs: Immaterial Context: The exception related to employee reimbursement expenditures incurred during the prior fiscal year but submitted after the June 30, 2024 fiscal year-end. While the expenditures represented allowable costs, the related service period fell outside the applicable grant period. As a result, the expenditures were recorded in the fiscal year ended June 30, 2025 rather than the appropriate reporting period. Cause: Employee reimbursement requests were not submitted timely, resulting in the expenditures being recorded in the fiscal year in which payment was made rather than the fiscal year in which the related costs were incurred. Recommendation: Management should continue to strengthen year-end and subsequent review procedures over invoices and employee reimbursements to ensure expenditures are recorded in the appropriate reporting period and within the applicable grant period. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding.
Management will continue to strengthen year-end and subsequent review procedures over invoices and employee reimbursements to ensure expenditures are recorded in the appropriate reporting period and within the applicable grant period. Additional controls will be implemented to monitor submission deadlines for employee reimbursement requests to prevent recording expenditures in periods other than those in which the related costs were incurred.
Federal Agency: Department of Health and Human Services Federal Program Name: Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse Federal Assistance Listing Number: 93.958 and 93.959 Pass-Through Agency: State of Connecticut Department of Mental Health and Addiction Services, and State of Connecticut Department Children and Family Services Award Period: 7/1/2024-6/30/2025 and 3/1/2023-8/31/2025 Type of Finding: Allowed Costs in Relation of Payroll Allocations Criteria or Specific Requirement: The Office of Management and Budget (OMB) Cost Principles and Uniform Guidance require expenditures charged to federal awards to be recorded in accordance with applicable cost standards and the entity’s cost allocation policies, including proper allocations of payroll related costs. Time and effort reported must correspond to the actual hours worked and be consistent with the allocations of payroll costs reflected in the entity’s payroll records and general ledger. Condition: During testing of payroll transactions charged to federal awards, exceptions were identified across four employees in which the hours reflected on employee time cards did not agree to the labor costs allocated to federal awards in the general ledger and/or journal entries. The discrepancies noted indicate that payroll allocations to federal programs were not consistently supported by the underlying time records maintained by the entity. However, all federal funding is from Department of Health and Human Services. Questioned Costs: Immaterial Context: The exceptions identified relate to discrepancies between actual time worked as documented on employee time cards and the labor costs recorded and allocated to federal programs within the general ledger. While the employees performed work during the relevant periods and total payroll costs were accurately stated, the allocations to federal awards were not supported by the underlying time card records, resulting in labor charges to federal programs that were not reflective of actual time and effort spent on those programs. Cause: The payroll allocation process was not reconciled to individual employee time card records prior to posting journal entries to the general ledger. Recommendation: Management should implement reconciliation procedures to ensure that payroll allocations recorded to federal award programs are supported by and agree to actual time records prior to recording journal entries to the general ledger. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding.
Management will implement reconciliation procedures to ensure that payroll allocations recorded to federal award programs are supported by and agree to actual time records prior to recording journal entries to the general ledger. A supervisory review process will be established to periodically compare time card data against payroll journal entries to identify and resolve discrepancies on a timely basis.
Federal Agency: Department of Health and Human Services Federal Program Name: Block Grants for Community Mental Health Services and Block Grants for Prevention and Treatment of Substance Abuse Federal Assistance Listing Number: 93.958 and 93.959 Pass-Through Agency: State of Connecticut Department of Mental Health and Addiction Services, and State of Connecticut Department Child and Family Services Award Period: 7/1/2024-6/30/2025 and 3/1/2023-8/31/2025 Type of Finding: Reporting Criteria or Specific Requirement: Per the corresponding agreements, various financial reporting requirements on programs include interim and annual fiscal year-end financial reports. Condition: During testing of reporting requirements, certain financial reports submitted to the respective awarding agencies were identified for which supporting documentation was not available to confirm submission by the designated due dates established under the applicable grant agreements. As a result, it could not be determined whether certain interim and annual fiscal year-end financial reports were submitted in accordance with the deadlines required under the respective grant agreements. Questioned Costs: No costs were questioned. Context: While certain interim and annual fiscal year-end financial reports were submitted to the respective awarding agencies, timely submission in accordance with the applicable grant agreements could not be confirmed, as documentation evidencing the date of submission was not available or retained by the Organization. Cause: While management was aware of the reporting requirements, reporting practices lapsed, resulting in the inability to confirm whether submissions were made in accordance with the deadlines established under the applicable grant agreements. Recommendation: Management should implement a formal reporting calendar or tracking mechanism to monitor and ensure timely submission of all interim and annual fiscal year-end financial reports required under applicable grant agreements. Procedures should include designated responsibility for report submission and retention of supporting documentation evidencing the date of submission. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding.
Management will implement a formal reporting calendar or tracking mechanism to monitor and ensure timely submission of all interim and annual fiscal year-end financial reports required under applicable grant agreements. Procedures will include designated responsibility for report submission and retention of supporting documentation evidencing the date of submission for all future reporting periods.
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on February 28, 2025. 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 August 28, 2025, which was (357 days ago).
What is a management decision? →Criteria: Non-federal agencies must minimize the time elapsing between the transfer of funds from the US Treasury and disbursement by the non-federal entity for direct program and the proportionate share of allowable indirect costs. Condition: The organization was drawing funding every quarter based on the funding percentage for the quarter without regard for the disbursement of funds. Cause: Finance personnel were not aware of this requirement and drew down funding quarterly on a pro-rata basis. Effect: The funds were held in an account with a nominal amount of interest earned. There was no interest earnings on the account. Questioned Costs: There were no questioned costs. Recommendation: The finance personnel become familiar with the federal compliance supplement as it relates to cash management and only initiate a draw down when federal funds are expended. Organization's response: After the former finance director completed the federal webinars on the guidelines for requesting funds through the Payment Management System and submitting Federal Financial Reports, it was identified and disclosed to the auditors that draw down procedures had not been in compliance. SAMHSA was notified and accounts were reconciled with the return of unspent funds. All drawdowns are currently only occurring when funds are expended. Current finance personnel are trained and have extensive experience in federal reporting guidelines.
After the former finance director completed the federal webinars on the guidelines for requesting funds through the Payment Management System and submitting Federal Financial Reports, it was identified and disclosed to the auditors that draw down procedures had not been in compliance. SAMHSA was notified and accounts were reconciled with the return of unspent funds. All drawdowns are currently only occurring when funds are expended. Current finance personnel are trained and have extensive experience in federal reporting guidelines.
2023-001
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on May 8, 2024. 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 November 8, 2024, which was (650 days ago).
What is a management decision? →Criteria: Non-federal agencies must minimize the time elapsing between the transfer of funds from the US Treasury and disbursement by the non-federal entity for direct program and the proportionate share of allowable indirect costs. Condition: The organization was drawing funding every quarter based on the funding percentage for the quarter without regard for the disbursement of funds. Cause: Finance personnel were not aware of this requirement and drew down funding quarterly on a pro-rata basis. Effect: The funds were held in an account with a nominal amount of interest earned. Interest earnings on the account were $16. Questioned costs: There were no questioned costs. Recommendation: The finance personnel become familiar with the federal compliance supplement as it relates to cash management and only initiate a draw down when federal funds are expended.
Organization’s response: After the former finance director completed the federal webinars on the guidelines for requesting funds through the Payment Management System and submitting Federal Financial Reports, it was identified and disclosed to the auditors that drawdown procedures had not been in compliance. SAMHSA was notified and accounts were reconciled with the return of unspent funds. All drawdowns are currently only occurring when funds are expended. Current finance personnel are trained and have extensive experience in federal reporting guidelines.
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 12, 2023. 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 June 12, 2024, which was (799 days ago).
What is a management decision? →A written cost allocaion plan be implemented to ensure the proper use of federal and state grants. There was no written cost allocation plan. Adequate records were not maintained to determine that the organization complied with material compliance requirements.
Agree with the finding. The Organization met the requirement for a cost allocation plan in the single audit year for 2020-2021. There was no written cost allocation plan submitted for the 2022 audit year. A cost allocation plan has been updated, approved by the board, and implemented to ensure material compliance requirements are being met.
Adequate records be maintained to ensure that expenditures are allowable, properly authorized, properly allocated, and transactions are complete. For the invoices and timesheets selected for testing there was inadequate documentation to determine if an expenditure had been authorized and properly allocated. The compliance requirements for accuracy, completeness, authorization, procurement, and subrecipient monitoring were not evident in the documents provided. Management was not vested in the Organization's policies to adequately monitor and expend federal funding.
Agree with the finding. A system of internal control policies has been implemented where there is a preparer and reviewer for all transactions. All transactions are allocated according to the cost allocation plan. The Internal Controls Policy details specific roles and responsibilities of management. Material compliance knowledge requirements are being met by compliance training provided by state and federal funding entities alongside review of the guidance and contract manuals. Additional documentation such as expense justification forms and vendor approval lists have been implemented.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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