| Financial Audit Division | Released March 2021 |
OLA found that internal controls over the areas in our audit scope were not adequate to ensure that DHS, through its Behavioral Health Division, safeguarded assets and ensured compliance with legal requirements and state policies related to grant oversight.
OLA also found that the Department of Human Services, through its Behavioral Health Division, did not comply with legal requirements and state policies related to grant oversight.
| Internal Controls Not Adequate | Did Not Comply with Legal Requirements and State Policy | |
|---|---|---|
| Finding 1. DHS and the Behavioral Health Division lacked effective oversight of BHD grant administration to ensure compliance with Office of Grant Management policies and related legal requirements. | Yes | Yes |
| Finding 2. The DHS Behavioral Health Division did not have adequate internal controls or comply with legal requirements to make and preserve documentation related to grant management. | Yes | Yes |
| Finding 3. DHS Behavioral Health Division administrators did not ensure that employees had the appropriate skills, knowledge, and job descriptions to manage grants in compliance with state and federal requirements. | Yes | Yes |
| Finding 4. The DHS Behavioral Health Division did not comply with state requirements to document and retain conflict of interest disclosures. | Yes | Yes |
| Finding 5. The DHS Behavioral Health Division issued requests for proposals that omitted required information. | Yes | Yes |
| Finding 6. The DHS Behavioral Health Division did not always use a required standardized scoring process when evaluating grant applications through a competitive bid process. | Yes | Yes |
| Finding 7. The DHS Behavioral Health Division did not comply with state requirements to determine whether grant recipients were financially stable prior to awarding the grant. | Yes | Yes |
| Finding 8. For some competitive bid grants, the DHS Behavioral Health Division did not demonstrate it complied with state requirements when selecting grantees. | Yes | Yes |
| Finding 9. The DHS Behavioral Health Division did not ensure that appropriate staff approved advance payments to grantees and, for some grants, document required rationale for the payments. | Yes | Yes |
| Finding 10. The DHS Behavioral Health Division did not ensure grantees submitted required progress reports, and grant managers did not withhold payments to grantees whose reports were past due. | Yes | Yes |
| Finding 11. The DHS Behavioral Health Division did not always obtain required documentation or approval for payments to grantees. | Yes | Yes |
| Finding 12. The DHS Behavioral Health Division did not conduct and document required monitoring visits of grantees. | Yes | Yes |
| Finding 13. The DHS Behavioral Health Division did not conduct and document required financial reconciliations of grantees' expenditures. | Yes | Yes |
| Finding 14. The DHS Behavioral Health Division did not complete required closeout evaluations of grantees. | Yes | Yes |
