Observations
Based on an administrative review, the project failed to obtain the services of an independent certified public accountant for an annual financial audit of activities associated with the project's drug/alcohol abuse services, in accordance with generally accepted accounting principles which include reference to the drug and alcohol treatment activities.The project had an exception to the regulation requiring an audit if the project's gross income is less than $500,000. However, the project provided a copy of their 2024 tax return indicating the gross income exceeded $500,000 for the project's previous fiscal year; therefore, the exception is no longer valid, and a financial audit was to be completed.This finding was reviewed with facility staff during the licensing process.
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Plan of Correction
This finding has been reviewed by Project Director, Facility Director, CFO, COO and CEO. As we no longer meet the criteria for the exception to the regulation requiring an audit, we have obtained the services of an independent certified public accountant to complete an audit of the drug/alcohol abuse services, in accordance with generally accepted accounting principles.
Due to the fact that it is currently tax season, our accountant has informed us that we should expect to have this audit completed on or before July 1, 2026.
The Facility Director will work with the CFO to ensure that this audit is completed in the timeframe indicated. |