EIN: 860252067
UEI: CJS4NYJBC919
Audit also covers EIN: 860292390
Audited by: CBIZ CPAs P.C.
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 June 30, 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 December 30, 2026 (117 days from today).
What is a management decision? →FAC accepted this audit on November 13, 2025 — management decision was due May 13, 2026.
FAC accepted this audit on March 22, 2024 — management decision was due September 22, 2024.
FAC accepted this audit on May 14, 2023 — management decision was due November 14, 2023.
FAC accepted this audit on March 7, 2022 — management decision was due September 7, 2022.
FAC accepted this audit on June 22, 2021 — management decision was due December 22, 2021.
FAC accepted this audit on June 25, 2020 — management decision was due December 25, 2020.
Item: 2019-001 CFDA Number: 93.959 Program: Block Grants for Prevention and Treatment of Substance Abuse Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Mercy Care Award Period: October 1, 2018 ? September 30, 2019 Compliance Requirement: Level of Effort Criteria: In accordance with the contract with Mercy Care, TERROS, Inc. is required to submit claim and encounter data related to services provided to eligible members under the Block Grant for Prevention and Treatment of Substance Abuse. This claim and encounter data must be accurate, complete and truthful, as specified in the contract with Mercy Care. This claim and encounter data, which is assigned a service value through the billing process, is then utilized to demonstrate to the funder that the dollar value of services provided is sufficient to achieve the required level of effort and earn the block grant funding. Condition and Context: During testing of a non-statistical sample of 40 claims/encounters from a population of in excess of 250, we noted 5 exceptions. For 4 of the 5 exceptions, we noted that TERROS Inc. improperly classified the claim/encounter as outpatient services when it should have been classified as recovery services based on the nature of the underlying service and where the service was provided. As such, claim/encounter value was under-reported by approximately $241. For 1 of the 5 exceptions, we noted that TERROS, Inc. utilized an incorrect rate as a result of an error in the contract rate upload process. As such, claim/encounter value was under-reported by approximately $1. While the errors resulted in under-reported encounter value and did not impact TERROS Inc. meeting the level of effort requirement, given the error rate and potential error, the associated control deficiency is also deemed to be a material weakness in internal control over compliance. Questioned Cost: None Effect: Claims/encounter data submitted to the funder was under-reported by approximately $242. Cause: TERROS, Inc. has not established a system of internal controls to ensure that claims/encounters are properly input and valued in accordance with the contract. A control has not been designed and implemented which requires a level of secondary review over the manual classification and input of services into the billing system based on the nature and location of the services. Additionally, a control has not been designed and implemented to provide for a secondary review of contract rates uploaded into the billing system for accuracy. Identification as a Repeat Finding: Not a repeat finding. Recommendation: TERROS, Inc. should established a system of internal controls to validate that claims/encounters are properly input and valued in accordance with the contract. Specifically, TERROS, Inc.?s management should add a secondary review over the manual classification and input of services into the billing system. Additionally, TERROS, Inc. should implement a control to provide for a secondary review of contract rates uploaded into the billing system for accuracy. Views of Responsible Officials: Management of TERROS, Inc. concurs with the finding. See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Item: 2019-001 CFDA Number: 93.959 Program: Block Grants for Prevention and Treatment of Substance Abuse Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Mercy Care Award Period: October 1, 2018 ? September 30, 2019 Compliance Requirement: Level of Effort Criteria: In accordance with the contract with Mercy Care, TERROS, Inc. is required to submit claim and encounter data related to services provided to eligible members under the Block Grant for Prevention and Treatment of Substance Abuse. This claim and encounter data must be accurate, complete and truthful, as specified in the contract with Mercy Care. This claim and encounter data, which is assigned a service value through the billing process, is then utilized to demonstrate to the funder that the dollar value of services provided is sufficient to achieve the required level of effort and earn the block grant funding. Condition and Context: During testing of a non-statistical sample of 40 claims/encounters from a population of in excess of 250, we noted 5 exceptions. For 4 of the 5 exceptions, we noted that TERROS Inc. improperly classified the claim/encounter as outpatient services when it should have been classified as recovery services based on the nature of the underlying service and where the service was provided. As such, claim/encounter value was under-reported by approximately $241. For 1 of the 5 exceptions, we noted that TERROS, Inc. utilized an incorrect rate as a result of an error in the contract rate upload process. As such, claim/encounter value was under-reported by approximately $1. While the errors resulted in under-reported encounter value and did not impact TERROS Inc. meeting the level of effort requirement, given the error rate and potential error, the associated control deficiency is also deemed to be a material weakness in internal control over compliance. Questioned Cost: None Effect: Claims/encounter data submitted to the funder was under-reported by approximately $242. Cause: TERROS, Inc. has not established a system of internal controls to ensure that claims/encounters are properly input and valued in accordance with the contract. A control has not been designed and implemented which requires a level of secondary review over the manual classification and input of services into the billing system based on the nature and location of the services. Additionally, a control has not been designed and implemented to provide for a secondary review of contract rates uploaded into the billing system for accuracy. Identification as a Repeat Finding: Not a repeat finding. Recommendation: TERROS, Inc. should established a system of internal controls to validate that claims/encounters are properly input and valued in accordance with the contract. Specifically, TERROS, Inc.?s management should add a secondary review over the manual classification and input of services into the billing system. Additionally, TERROS, Inc. should implement a control to provide for a secondary review of contract rates uploaded into the billing system for accuracy. Views of Responsible Officials: Management of TERROS, Inc. concurs with the finding. See Corrective Action Plan.
Item: 2019-001 CFDA Number: 93.959 Program: Block Grants for Prevention and Treatment of Substance Abuse Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Mercy Care Compliance Requirement: Level of Effort Criteria: In accordance with the contract with Mercy Care, TERROS, Inc. is required to submit claim and encounter data related to services provided to eligible members under the Block Grant for Prevention and Treatment of Substance Abuse. This claim and encounter data must be accurate, complete and truthful, as specified in the contract with Mercy Care. This claim and encounter data, which is assigned a service value through the billing process, is then utilized to demonstrate to the funder that the dollar value of services provided is sufficient to achieve the required level of effort and earn the block grant funding. Condition: During testing of a non-statistical sample of 40 claims/encounters from a population of in excess of 250, we noted 5 exceptions. For 4 of the 5 exceptions, we noted that TERROS Inc. improperly classified the claim/encounter as outpatient services when it should have been classified as recovery services based on the nature of the underlying service and where the service was provided. As such, claim/encounter value was under-reported by approximately $241. For 1 of the 5 exceptions, we noted that TERROS, Inc. utilized an incorrect rate as a result of an error in the contract rate upload process. As such, claim/encounter value was under-reported by approximately $1. While the errors resulted in under-reported encounter value and did not impact TERROS Inc. meeting the level of effort requirement, given the error rate and potential error, the associated control deficiency is also deemed to be a material weakness in internal control over compliance. Name of Contact Person: Liz Ketter, CFO Phone Number: (602) 512-2960 Anticipated Completion Date: September 30, 2020 Views of Responsible Officials and Corrective Actions: Management will establish a system of internal controls to ensure that claims/encounters are properly input and valued in accordance with the contract. Management will add a level of review over the manual classification and input of services into the billing system. Additionally, management will implement a control to provide for a review of contract rates uploaded into the billing system to ensure accuracy.
FAC accepted this audit on April 28, 2019 — management decision was due October 28, 2019.
FAC accepted this audit on June 17, 2018 — management decision was due December 17, 2018.
FAC accepted this audit on August 29, 2017 — management decision was due March 1, 2018.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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