Family Service and Guidance Center of Topeka, Inc.Non-Profit

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Reporting Criteria or specific requirement Internal controls should be in place to ensure that reports are filed accurately and by applicable due dates. Condition During the year under audit, there was turnover in personnel that led to responsible reporting parties to not receive reporting deadline notifications, as well as a staffing shortfall that required responsible reporting parties to be inundated with additional responsibilities, causing reporting deadlines to be missed. Context The IPS MHBG ARPA Grant had 3 reports filed after reporting deadlines and the CMHC Grant had 1 report filed after reporting deadlines. Effect Reports were filed after applicable deadlines. Cause Staffing shortages and turnover caused reporting deadlines to be missed. Recommendation Employees with grant reporting responsibilities need to be aware of reporting deadlines and implement processes and procedures to ensure deadlines are identified and communicated to all parties involved. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that indirect cost rates are applied to the modified total direct cost base. Condition During the year under audit, the indirect cost rate applied to the modified total direct cost base was more than the de minimis indirect cost rate elected. Context An additional $677.40 in indirect costs were applied to the IPS MHBG ARPA Grant for the year ended December 31, 2023. Effect Indirect costs rates were incorrectly charged to the IPS MHBG ARPA Grant for the period under audit. Cause Since the total indirect costs as a percentage of total grant expenses was under the 10% de minimis indirect cost rate elected, grant management thought indirect costs charged were in compliance with indirect cost rate rules. Management was not aware that the percentage must be 10% or less of the modified total direct cost base rather than total grant expenses. Recommendation The elected 10% de minimis indirect cost rate should be applied consistently across all federal grant awards to the modified total direct cost base for each federal grant award. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program 93.958 – Block Grants for Community Mental Health Services and 93.696 – Certified Community Behavioral Health Clinic Expansion Grants Compliance requirements Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria or specific requirement Internal controls should be in place to ensure that costs are correctly charged as to account, amount, and period, and to ensure that costs are adequately documented and supported. Condition During the year under audit, multiple instances were identified were amounts booked via journal entries were either recorded incorrectly or were not made at all, as well as two months where a grant was overcharged for eligible expenses. Context During testing, one expenditure charged to the CCBHC Expansion Grant was identified as an unallowable expenditure. However, prior to this testing, the client had identified overcharges to the CMHC Grant, CCBHC Expansion Grant and IPS MHBG ARPA Grant as a result of internal reconciliation processes for audit preparedness. The IPS MHBG ARPA Grant had $50.00 in over-charges during the year ended December 31, 2023. The CMHC Grant had $45.22 in over-charges during the year ended December 31, 2023. An amount of $3,197.40 in likely questioned costs were identified for 93.958 – Block Grants for Community Mental Health Services. The CCBHC Expansion Grant had $390.38 in over-charges during the year ended December 31, 2023. An amount of $2,184.68 in likely questioned costs were identified for 93.696 – Certified Community Behavioral Health Clinic Expansion Grants. Effect Expenditures were incorrectly charged to the programs for the period under audit. Cause Human error occurred during the process of manually creating journal entries to book expenditures to the program, as well as human error in identifying instances where journal entries were needed to accurately reflect eligible program expenses but those journal entries were not made. Recommendation We recommend that supporting documentation when preparing journal entries associated with federal programs are reviewed carefully and that grant reconciliations of eligible expenses to those recorded in the accounting software occur monthly. Views of responsible officials and planned corrective actions See corrective action plan.

Federal program Block Grants for Community Mental Health Services – 93.958 – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Criteria or specific requirement To be allowable under a federal award, costs must be reasonable, allocable, and adequately documented. A cost is reasonable if it does not exceed what a prudent person would incur under similar circumstances. A cost is allocable to a federal award to the extent the goods or services benefited the program. A cost is adequately documented if it is supported by accounting records and source documentation, such as purchase orders, vouchers, invoices, payroll allocation reports, payroll summaries, timesheets, etc. Condition During testing, Family Service and Guidance Center, Inc. decided to remove health insurance costs as an allowable cost under the Federal Mental Health Block Grant. These costs had originally been included as allowable costs for the period under audit. Context Family Service and Guidance Center, Inc. did not have a process in place in which to adequately document the health insurance allocation to the Federal Mental Health Block Grant. The total amount of health insurance costs considered unallowable within the Federal Mental Health Block Grant totaled $5,010.05. Effect Unallowable costs were charged to the Federal Mental Health Block Grant. Cause While health insurance is considered an allowable expense per the Federal Mental Health Block Grant program, after initially including it within allowable expenses internally, Family Service and Guidance Center, Inc. determined it was too complex to determine the allocation of health insurance costs attributable to the Federal Mental Health Block Grant program. Recommendation We recommend that costs charged to federal programs be reviewed for allowableness to ensure compliance requirements are being met and expenses are allowable per the program. Views of responsible officials and planned corrective actions See corrective action plan.