MENTAL HEALTH AND ANTI-ADDICTION SERVICES ADMINISTRATIONState Government

FEDERAL PROGRAM BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE COVID-19 ? BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE (ASSISTANCE LISTING NUMBER 93.959) U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES AWARD NUMBER 19BIPRSAPT COMPLIANCE REQUIREMENT LEVEL OF EFFORT ? MAINTENANCE OF EFFORT (MOE) TYPE OF FINDING SIGNIFICANT DEFICIENCY AND NONCOMPLIANCE CRITERIA OR SPECIFIC REQUIREMENT The 45 CFR Section 96.134 (a) requires that the principal agency of a State carrying out authorized activities for the grant to maintain compliance with a prescribe level of effort. The state agency (MHAASA) shall for each fiscal year maintain aggregate state funds expenditures for authorized activities at a level that is not less than the average level of such expenditures maintained by the state funds for the two-year period preceding the fiscal year for which the State is applying for the federal grant. The Block Grant shall not be used to supplant State funding of alcohol and other drug prevention and treatment programs. CONDITION During our audit procedures over internal control and compliance for the Maintenance of Effort requirement, we noted that the aggregate expenditures for the fiscal year under audit were less than the average level of such expenditures maintained by the State for the two fiscal years preceding our audit year. QUESTIONED COSTS None CONTEXT This is a new finding and represents a systematic problem per our evaluation. Fiscal crisis in Puerto Rico has made it very difficult for MHAASA to comply with the required level of state funds expenditures. MHAASA did not provide evidence of requesting a waiver for fiscal year 2020-2021, instead, MHAASA provided evidence of the follow up of documentation providing material compliance to Substance Abuse and Mental Health Services Administration for fiscal year 2016. EFFECT MHAASA could receive a decrease of federal funds if the required MOE amount is not met. CAUSE MHAASA, is an agency of the Commonwealth of Puerto Rico, and the budget is appropriated by the Legislature and the Fiscal Oversight Management Board. Funds appropriated to MHAASA have been decreasing for the last two fiscal years as result of the fiscal expenditure controls establish by the FOMB as part of the Commonwealth approved bankruptcy procedures; in addition, the Medicaid funds appropriated to Puerto Rico for the last two years, have also been decreasing. IDENTIFICATION AS A REPEAT FINDING Not applicable. RECOMMENDATION We recommend that a yearly waiver request must be sent to Substance Abuse and Mental Health Services Administration officers along with a quarterly reminder so that their request can be discussed with urgency.

FEDERAL PROGRAM BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE COVID-19 ? BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE (ASSISTANCE LISTING NUMBER 93.959) U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES AWARD NUMBER 19BIPRSAPT COMPLIANCE REQUIREMENT LEVEL OF EFFORT ? MAINTENANCE OF EFFORT (MOE) TYPE OF FINDING SIGNIFICANT DEFICIENCY AND NONCOMPLIANCE CRITERIA OR SPECIFIC REQUIREMENT The 45 CFR Section 96.124 (c) states that Subject to paragraph (d) of this section, a State is required to expend the Block Grant on women services as follows: (3) For grants beyond fiscal year 1994, the States shall expend no less than an amount equal to the amount expended by the State for fiscal year 1994. In addition, in Section (d) states that upon the request of a State, the Secretary may waive all or part of the requirement in paragraph (c) of this section if the Secretary determines that the State is providing an adequate level of services for this population. In determining whether an adequate level of services is being provided the Secretary will review the extent to which such individuals are receiving services. This determination may be supported by a combination of criminal justice data, the National Drug and Treatment Units Survey, statewide needs assessment data, waiting list data, welfare department data, including Medicaid expenditures, or other State statistical data that are systematically collected. The Secretary will also consider the extent to which the State offers the minimum services required under ? 96.124 (e). The Secretary shall approve or deny a request for a waiver not later than 120 days after the date on which the request is made. Any waiver provided by the Secretary shall be applicable only to the fiscal year involved. CONDITION During our audit procedures over internal control and compliance for the Maintenance of Effort requirement, we noted that the expenditures incurred were less than the calculated fiscal year 1994 base amount. No evidence was provided in relation to requesting a waiver for the fiscal year 2020-2021. QUESTIONED COSTS None CONTEXT This is a new finding and represents a systematic problem per our evaluation. Population decreases and fiscal crisis in Puerto Rico has made it very difficult for MHAASA to comply with the required expenditures amount. MHAASA should request this waiver annually as provided in the regulation. EFFECT MHAASA could receive a decrease of federal funds if the required MOE amount is not met. CAUSE MHAASA, is an agency of the Commonwealth of Puerto Rico, and the budget is appropriated by the Legislature and the Fiscal Oversight Management Board. Funds appropriated to MHAASA have been decreasing for the last two fiscal years. In addition, MHAASA did not requested a wavier as provided in the regulation, for the fiscal year 2020-2021. IDENTIFICATION AS A REPEAT FINDING Not applicable.RECOMMENDATION We recommend MHAASA to request, on a timely basis, a waiver if they understand that the MOE will not be accomplished and retain evidence of the request and subsequent follow up with the Substance Abuse and Mental Health Services Administration.

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