EIN: 581446309
UEI: ZKBNDNC6ZW33
Audited by: B. Dane Byers CPA, PLLC
Oversight agency: 93 [Department of Health and Human Services]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 25, 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 September 25, 2026 (22 days from today).
What is a management decision? →FAC accepted this audit on March 14, 2025 — management decision was due September 14, 2025.
FAC accepted this audit on March 21, 2024 — management decision was due September 21, 2024.
Improve Financial Close Process. Federal Program Information: Substance Abuse and Mental Health Services Projects of Regional and National Significance (Assistance Listing - 93.243) Condition and Criteria: During the course of the audit, we proposed approximately 18 audit adjusting journal entries to properly state the financial statements. Eight of these entries were to restate beginning net assets to record transactions in the proper period. Many of the adjustments related to proper revenue recognition and related accounts receivables and the reversal of accounts receivable and payables that related to prior years. Prior year audit finding: N/A. Cause and Effect: The lack in internal control over financial reporting exists in the financial statement close process for preparing the Center’s year-end financial statements. This could result in management making operational and financial decisions based on inaccurate financial information. Additionally, the inaccurate financial information could result in inaccurate reporting to federal and state funding agencies on grants and awards. Context: This represents a systemic problem. Questioned Costs: None. Recommendation: To improve the financial statement close process, we recommend that the Center establish more efficient and effective policies to provide timely and accurate completion of financial reporting, as well as timely review and approval of all statement of financial position reconciliations and account balances. Management’s Response: Management uses interim accounting and financial management reports that are designed to assist the board and officers to manage the Center’s grants effectively, efficiently, and aligned with financial and non-financial grant compliance. Management and the board realize that certain adjustments to the interim financial statements used to manage grant compliance and performance are not prepared on an as-if-audited basis. We will consider the implementation of a more rigorous monthly close to more accurately reflect period-end balances and the capturing of any potential reconciling items that could later be needed to substantiate expenditures as of a particular date.
Show full finding ▾Hide full finding ▴Improve Financial Close Process. Federal Program Information: Substance Abuse and Mental Health Services Projects of Regional and National Significance (Assistance Listing - 93.243) Condition and Criteria: During the course of the audit, we proposed approximately 18 audit adjusting journal entries to properly state the financial statements. Eight of these entries were to restate beginning net assets to record transactions in the proper period. Many of the adjustments related to proper revenue recognition and related accounts receivables and the reversal of accounts receivable and payables that related to prior years. Prior year audit finding: N/A. Cause and Effect: The lack in internal control over financial reporting exists in the financial statement close process for preparing the Center’s year-end financial statements. This could result in management making operational and financial decisions based on inaccurate financial information. Additionally, the inaccurate financial information could result in inaccurate reporting to federal and state funding agencies on grants and awards. Context: This represents a systemic problem. Questioned Costs: None. Recommendation: To improve the financial statement close process, we recommend that the Center establish more efficient and effective policies to provide timely and accurate completion of financial reporting, as well as timely review and approval of all statement of financial position reconciliations and account balances. Management’s Response: Management uses interim accounting and financial management reports that are designed to assist the board and officers to manage the Center’s grants effectively, efficiently, and aligned with financial and non-financial grant compliance. Management and the board realize that certain adjustments to the interim financial statements used to manage grant compliance and performance are not prepared on an as-if-audited basis. We will consider the implementation of a more rigorous monthly close to more accurately reflect period-end balances and the capturing of any potential reconciling items that could later be needed to substantiate expenditures as of a particular date.
The adjusting entries as the result of the audit have been recorded. We are also updating our financial policy to a more rigorous quarterly financial close, where will ensure all ending balances reconcile to beginning balances. Estimated date of completion, June 1, 2024.
Reporting: Inaccurate Financial Reporting. Federal Program Information: Substance Abuse and Mental Health Services Projects of Regional and National Significance (Federal Assistance Listing - 93.243) Condition and Criteria: The Center is required to maintain internal controls over expenditures in order to ensure that only federal expenditures are reported to the oversight agency. During audit procedures, we noted two instances where the cumulative expenditures reported on Form SF-425 did not agree to cumulative expenditures per the accounting records. Prior Year Audit Finding: N/A. Cause and Effect: The Center received a refund for subcontractor expenses that was inadvertently recorded as other grant revenue rather than reducing the related expenditures, resulting in over reporting of expenditures. Additionally, it was noted the Center submits draw down requests prior to the end of the grant period for expenses incurred at that point in time. This increases the opportunity for actual expenditures to differ from draw down amounts. These two factors contribute to increased risk of actual federal expenditures not being accurately reported to the oversight agency. Context: Annual SF-425 reports were tested for the three HHS awards. The test found the incorrect expenditures were reported to the agency for two awards, one which expenditures were underreported and another which expenditures were overreported. This represents a systemic problem. Questioned Costs: None. Recommendation: We recommend the Center implement procedures to generate program reports from the accounting records at the time of the report preparation and document any reconciling items to ensure federal expenditures reported to the oversight agency are complete and accurate. These reports should be maintained as supporting documentation for the report submission to substantiate the specific amounts of funds drawn down on a specific date. Any subsequent adjustments to cash or expenditures can be taken into consideration in subsequent draw down requests and reflected in a modified SF-425 report submission. We also recommend the Center implement procedures to submit draw down requests for grant funds after the month has closed. This will ensure all federal expenditures are captured in the annual reporting. Management’s Response: Management understands the importance of maintaining complete and accurate records of expenditures submitted to the oversight agency. As part of our response indicated at 2023-002, we will continue to ensure submitted expenditures agree to the accounting records prior to submission, and retain contemporaneous support for any reconciling items, such that any differences between expenses reported to a federal agency and expenses recorded in the accounting records subsequent to report submission can be quickly and easily resolved upon request.
Show full finding ▾Hide full finding ▴Reporting: Inaccurate Financial Reporting. Federal Program Information: Substance Abuse and Mental Health Services Projects of Regional and National Significance (Federal Assistance Listing - 93.243) Condition and Criteria: The Center is required to maintain internal controls over expenditures in order to ensure that only federal expenditures are reported to the oversight agency. During audit procedures, we noted two instances where the cumulative expenditures reported on Form SF-425 did not agree to cumulative expenditures per the accounting records. Prior Year Audit Finding: N/A. Cause and Effect: The Center received a refund for subcontractor expenses that was inadvertently recorded as other grant revenue rather than reducing the related expenditures, resulting in over reporting of expenditures. Additionally, it was noted the Center submits draw down requests prior to the end of the grant period for expenses incurred at that point in time. This increases the opportunity for actual expenditures to differ from draw down amounts. These two factors contribute to increased risk of actual federal expenditures not being accurately reported to the oversight agency. Context: Annual SF-425 reports were tested for the three HHS awards. The test found the incorrect expenditures were reported to the agency for two awards, one which expenditures were underreported and another which expenditures were overreported. This represents a systemic problem. Questioned Costs: None. Recommendation: We recommend the Center implement procedures to generate program reports from the accounting records at the time of the report preparation and document any reconciling items to ensure federal expenditures reported to the oversight agency are complete and accurate. These reports should be maintained as supporting documentation for the report submission to substantiate the specific amounts of funds drawn down on a specific date. Any subsequent adjustments to cash or expenditures can be taken into consideration in subsequent draw down requests and reflected in a modified SF-425 report submission. We also recommend the Center implement procedures to submit draw down requests for grant funds after the month has closed. This will ensure all federal expenditures are captured in the annual reporting. Management’s Response: Management understands the importance of maintaining complete and accurate records of expenditures submitted to the oversight agency. As part of our response indicated at 2023-002, we will continue to ensure submitted expenditures agree to the accounting records prior to submission, and retain contemporaneous support for any reconciling items, such that any differences between expenses reported to a federal agency and expenses recorded in the accounting records subsequent to report submission can be quickly and easily resolved upon request.
In addition to changes made under Corrective Action Work Plan 2023-002, we are updating our drawdown procedures to include an additional step to reconcile expenditures to the accounting records at the time of submission. If there are any discrepancies, any reconciling items will be retained as part of the file maintained for that grant.
FAC accepted this audit on December 20, 2022 — management decision was due June 20, 2023.
FAC accepted this audit on December 5, 2021 — management decision was due June 5, 2022.
FAC accepted this audit on March 23, 2021 — management decision was due September 23, 2021.
FAC accepted this audit on March 3, 2020 — management decision was due September 3, 2020.
FAC accepted this audit on March 11, 2019 — management decision was due September 11, 2019.
FAC accepted this audit on March 8, 2018 — management decision was due September 8, 2018.
FAC accepted this audit on March 6, 2017 — management decision was due September 6, 2017.
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