EIN: 231728478
UEI: XDLVD9ASVKN5
Data as of August 22, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on August 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 February 4, 2027 (166 days from today).
What is a management decision? →During our testing of cash management drawdowns, it was noted that drawdowns were not being approved internally before submission. This led to an overdrawing of funds during the year. However, as of year-end there were more expenses incurred than funds drawn down. Context: It was noted through testing of 2 cash management drawdowns that all drawdowns tested did not have proper approvals or reviews noted before submission. Cause: Lack of internal control process Effect: Lack of review and approval before submission can lead to misstatements in the financial statements and incorrect use of federal awards. Repeat Finding: No Recommendation: We recommend that management ensure that all drawdowns are reviewed and approved before submission. Views of Responsible Officials: Please refer to NorthEast Treatment Centers, Inc.’s Corrective Action Plan.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Certified Community Behavioral Health Clinic Expansion Grants Assistance Listing Numbers: 93.696 Federal Award Identification Number and Year: 5H79SM086813-02 (2024) Award Period: September 30, 2022 through September 29, 2026 Type of Finding: Material Weakness in Internal Control over Compliance- Cash Management Criteria: Drawdowns need to be reviewed and approved before submission. This process is vital in order to ensure proper controls are in place to mitigate any misstatements from entering into the financial statements. Condition: During our testing of cash management drawdowns, it was noted that drawdowns were not being approved internally before submission. This led to an overdrawing of funds during the year. However, as of year-end there were more expenses incurred than funds drawn down. Context: It was noted through testing of 2 cash management drawdowns that all drawdowns tested did not have proper approvals or reviews noted before submission. Cause: Lack of internal control process Effect: Lack of review and approval before submission can lead to misstatements in the financial statements and incorrect use of federal awards. Repeat Finding: No Recommendation: We recommend that management ensure that all drawdowns are reviewed and approved before submission. Views of Responsible Officials: Please refer to NorthEast Treatment Centers, Inc.’s Corrective Action Plan.
Type of Finding: Material Weakness in Internal Control over Compliance- Cash Management Recommendation: We recommend that management ensure that all drawdowns are reviewed and approved before submission. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Action taken in response to finding: Management has implemented a policy which requires each drawdown to be reviewed and to be based only expenses incurred for the period, prohibiting the use of a straight-line calculation to draw down funds. Invoices are also approved by the CFO or CEO prior to submission. Name of the contact person responsible for corrective action: Regan Kelly, CEO of NorthEast Treatment Centers, Inc. at (215) 451-7000 Planned completion date for corrective action plan: December 31, 2026
FAC accepted this audit on December 12, 2025 — management decision was due June 12, 2026.
During our testing of internal controls over the payroll charged to the grant, we noted that management was unable to provide evidence of authorized wages that matched the rate per the payroll register for three separate employees. Additionally, management was unable to provide three W-4s and two I-9s. Context: We noted through testing of payroll disbursements that three employees out of eleven sampled did not have an authorized wage rate form that could be produced. Cause: We noted that the payroll and hiring process is a very manual/paper-based process. Along with turnover in the department/delay in the audit, some documents were not able to be located. Effect: During the audit we noted that proper documentation was not retained to validate sampled payroll transactions. This could lead to a potential misstatement within the financial statements. Repeat Finding: No Recommendation: We recommend that management ensures that there is documented approval for all employees’ current pay rates and that a copy of all employees’ work documents (I-9, W4, background checks) are kept on file in line with the Centers’ policies. Views of Responsible Officials: Please refer to NorthEast Treatment Centers, Inc.’s Corrective Action Plan
Show full finding ▾Hide full finding ▴Criteria: Accurate documentation and retention of records are vital parts of Centers’ internal controls to ensure there are no misstatements contained within the financial statements from inaccuracies within the payroll process. Condition: During our testing of internal controls over the payroll charged to the grant, we noted that management was unable to provide evidence of authorized wages that matched the rate per the payroll register for three separate employees. Additionally, management was unable to provide three W-4s and two I-9s. Context: We noted through testing of payroll disbursements that three employees out of eleven sampled did not have an authorized wage rate form that could be produced. Cause: We noted that the payroll and hiring process is a very manual/paper-based process. Along with turnover in the department/delay in the audit, some documents were not able to be located. Effect: During the audit we noted that proper documentation was not retained to validate sampled payroll transactions. This could lead to a potential misstatement within the financial statements. Repeat Finding: No Recommendation: We recommend that management ensures that there is documented approval for all employees’ current pay rates and that a copy of all employees’ work documents (I-9, W4, background checks) are kept on file in line with the Centers’ policies. Views of Responsible Officials: Please refer to NorthEast Treatment Centers, Inc.’s Corrective Action Plan
Recommendation: We recommend that management ensures that there is documented approval for all employees’current pay rates and that a copy of all employee’s work documents (I-9, W4, background checks) are kept on file in line with the Centers’ policies Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Action taken in response to finding: Management has implemented a new payroll system and new policies within the HR department to ensure documentation is maintained electronically to support pay rates as well as maintaining all employee documents, including I-9, W4 and background checks. Name of the contact person responsible for corrective action: Regan Kelly, CEO of NorthEast Treatment Centers, Inc. (215) 451-7000
FAC accepted this audit on March 15, 2017 — management decision was due September 15, 2017.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴GSA_MIGRATION
GSA_MIGRATION
2015-001
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.
Track your findings and corrective action plans across audit cycles.
Start tracking findings →Monitor subrecipient audit findings and compliance status.
Start monitoring →© 2026 Single Audit Intelligence. All data is public domain.