FRASERNon-Profit

U.S. Department of Health and Human Services Federal Financial Assistance Listing #93.696 Certified Community Behavioral Health Clinic Expansion Grant Reporting Significant Deficiency in Internal Control over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: During our testing, we identified instances where the annual reports submitted had inaccurate information and incomplete documentation of review and approval prior to submission. Cause: Fraser’s internal controls did not operate as designed, which resulted in inaccurate reports being submitted. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: None reported. Context/Sampling: Both annual reports were reviewed in testing. Repeat Finding from Prior Year: No Recommendation: We recommend that management develop a more extensive and documented review over reporting prior to submission. Views of Responsible Officials: Management agrees with this finding.

U.S. Department of Health and Human Services Federal Financial Assistance Listing #93.696 Certified Community Behavioral Health Clinic Expansion Grant Cash Management Significant Deficiency in Internal Control over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: During our testing, we identified an instance where the reimbursement request had inaccurate information and incomplete documentation of review and approval prior to submission of the request. Cause: Fraser’s internal controls did not operate as designed, which resulted in an inaccurate reimbursement request being submitted. Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program. Questioned Costs: $761.08 Context/Sampling: A nonstatistical sample of three out of eleven were selected for testing. Repeat Finding from Prior Year: No Recommendation: We recommend that management develop a more extensive and documented review over reimbursement requests prior to submission. Views of Responsible Officials: Management agrees with this finding.

2024-02: Timely Submission The Single Audit Reporting Package for the year ended December 31, 2023 was submitted to the Federal Audit Clearinghouse on April 26, 2025, which was beyond the required date of September 30, 2024. This late submission constitutes noncompliance with 2 CFR §200.512(a). Criteria: The Single Audit Reporting Package for the year ended December 31, 2023 is required to be filed the earlier of 30 days after the receipt of the auditors’ report or nine months after year end. Condition: The Single Audit Reporting Package was uploaded to the Federal Audit Clearinghouse and was reviewed and approved; however, it was not submitted at that time resulting in the submission being late. Cause: Fraser and Affiliate did not receive notification that the uploaded reporting package was certified by its auditor. As a result, the uploaded Single Audit Reporting Package to the Federal Audit Clearinghouse was not finalized and submitted. Questioned Costs: None Effect: Monitoring procedures in place were not effective in ensuring the approved Single Audit Reporting Package was submitted timely. Recommendations: Fraser and Affiliate should implement controls to ensure the uploaded and approved Single Audit Reporting Package is timely submitted. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding and recommendation. Management will implement an additional step to the submission process to ensure the uploaded and approved Single Audit Reporting Package is timely submitted. The additional step will involve a reminder to reach out to its auditor on or prior to the due date if communication from its auditor noting its certification is not received.

U.S. Department of Health and Human Services, CCBHC Planning, Development and Implementation Grant ? Assistance Listing Number 93.696 according to 45 CFR ? 75, and the HHS Grants Policy Statement Criteria: Costs incurred outside the budget period are not allowed under the grant. Certain costs incurred prior to the budget period were included in costs which were reimbursed during the year ended December 31, 2022. Condition: Out of five expenses sampled, two invoices included costs incurred prior to the budget period. Cause: Fraser and Affiliate did not remove costs from certain invoices which were incurred prior to the budget period when determining allowable costs under the grant. Questioned Costs: $60,419.54 - out of $265,177.33 of sampled costs tested, $60,419.54 were noted as costs being incurred prior to the budget period. Effect: Monitoring procedures in place were not effective in ensuring only costs incurred during the budget period were submitted for reimbursement. Recommendation: Fraser and Affiliate should implement controls to ensure only costs incurred during the budget period are submitted for reimbursement. Views of Responsible Officials and Planned Corrective Actions: Management concurs with the finding and recommendation. Management will implement an additional review step to evaluate the timing of when such costs are incurred in order to meet the grant requirements. Fraser and Affiliate will also ensure the reimbursement of the unallowed costs will be remediated by reducing amounts reimbursed during 2023.