Department of Health and Human Services

Office of Inspector General -- AUDIT

"Incurred Cost Audit James Bell Associates, Inc. Substance Abuse and Mental Health Services Administration's Grant SM52395," (A-03-03-03301)

May 18, 2004

Complete Text of Report is available in PDF format (939 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


The objective of this audit was to determine whether James Bell Associates, Inc. (JBA) costs claimed from September 1, 2000 to August 31, 2001 were allowable, allocable, and reasonable under the terms of the grant and applicable Federal regulations.  We identified $174,724 in questionable costs and $28,547 that we set aside for adjudication by the Substance Abuse and Mental Health Services Administration (SAMHSA).  We recommended that SAMHSA ensure JBA develop and implement accounting policies and procedures to ensure adherence to applicable Federal regulations and Public Health Service Grants Policy requirements; refund to SAMHSA $174,724 in costs that were not allowable; and provide additional documentation to SAMHSA for $28,547 in costs that were unresolved; or refund to SAMHSA those unresolved costs for which no additional documentation is available.