HEART OF TEXAS BEHAVIORAL HEALTH NETWORK

Finding 2022-002: U.S. Department of Health and Human Services Passed through Texas Health and Human Services Commission (HHSC) Medicaid Administrative Claiming (MAC) CFDA 93.778 Reporting Material Weakness in Internal Control Over Compliance and Material Noncompliance Grant Award Number: 529-11-0040-00034A Criteria: Grant agreement requires entities to file quarterly reports for the Medical Assistance Program. Condition: We noted that the Center filed the quarterly reports as required; however, upon reviewing the support for the expenditures for the second quarter, it was noted that reported numbers were inaccurate which resulted in incorrect reporting and the receipt of unearned grant funds. Cause: The Center did not have adequate internal controls to review the reports in detail. Effect: The Reporting requirement for the second quarter was incorrectly reported, and unearned grant funds were received. Questioned Costs: $63,416 Context/Sampling: Sample size was two of the four quarters. Repeat Finding from Prior Year(s): No Recommendation: While the Center has controls in place to review the reports prior to being filed, we recommend for the Center to implement a detail review by line item by someone independent from report preparation responsibilities. Views of Responsible Officials: Management agrees with the finding. Refer to Corrective Action Plan.

Finding 2022-002 Federal Agency Name: United States Department of Health and Human Services Health Resources & Services Administration Program Name: Medicaid Administrative Claiming (MAC) CFDA # 93.778 Finding Summary: We noted that the Center filed the quarterly reports as required; however, upon reviewing the support for the expenditures for the second quarter, it was noted that reported numbers were inaccurate which resulted in incorrect reporting and the receipt of unearned grant funds. Responsible Individuals: Chief Financial Officer Corrective Action Plan: With specific regard to Medicaid Administrative Claiming (MAC) reporting? The Center will review and evaluate staff duties to provide proper segregation of duties. This will ensure that errors or irregularities are prevented or detected on a timely basis in the normal course of business and promptly corrected. The Center will review and evaluate staff training to ensure MAC reporting is performed in accordance with policies and procedures. The Center will review and evaluate MAC reporting review and approval processes to identify and correct errors prior to submitting the MAC reports. Anticipated Completion Date: August 31, 2023