Audit 174159

FY End
2022-09-30
Total Expended
$1.71M
Findings
24
Programs
6
Year: 2022 Accepted: 2023-08-23

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
204817 2022-003 Significant Deficiency - P
204818 2022-004 Significant Deficiency - H
204819 2022-003 Significant Deficiency - P
204820 2022-004 Significant Deficiency - H
204821 2022-003 Significant Deficiency - P
204822 2022-003 Significant Deficiency - P
204823 2022-003 Significant Deficiency - P
204824 2022-003 Significant Deficiency - P
204825 2022-003 Significant Deficiency - P
204826 2022-003 Significant Deficiency - P
204827 2022-005 Significant Deficiency - B
204828 2022-005 Significant Deficiency - B
781259 2022-003 Significant Deficiency - P
781260 2022-004 Significant Deficiency - H
781261 2022-003 Significant Deficiency - P
781262 2022-004 Significant Deficiency - H
781263 2022-003 Significant Deficiency - P
781264 2022-003 Significant Deficiency - P
781265 2022-003 Significant Deficiency - P
781266 2022-003 Significant Deficiency - P
781267 2022-003 Significant Deficiency - P
781268 2022-003 Significant Deficiency - P
781269 2022-005 Significant Deficiency - B
781270 2022-005 Significant Deficiency - B

Contacts

Name Title Type
NBBSKPEAHJ25 Shereda Finch Auditee
3342621629 Jeri S. Groce Auditor
No contacts on file

Notes to SEFA

Accounting Policies: 1. BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal grant activity ofCouncil on Substance Abuse NCADD and is presented on the accrual basis of accounting. Theinformation in this schedule is presented in accordance with the requirements of Title 2 U.S. Codeof Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards. Therefore, some amounts presented in this schedule may differfrom amounts presented in, or used in the preparation of, the basic financial statements.The Council did not provide federal awards to subrecipients during the year. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-004 - Period of Performance (Significant Deficiency and Noncompliance) Information on the federal program: U.S. Department of Health and Human Services, Assistance Listing #93.959 Block Grants for Prevention and Treatment of Substance Abuse. Criteria: 2 CFR section 200.77 defines the period of performance as the time during which the nonfederal entity may incur new obligations to carry out work authorized under the federal award. Condition: The Council recorded an expense in the current year and was subsequently reimbursed through the current year grant, however the expense was incurred in a prior period. Cause: The Council incurred advertising costs in the prior year, but the expense was not properly accrued in that year. The commercial run dates were June to September 2021. Effect: The Council was not in compliance with period of performance requirements. Questioned Costs: Known $2,083 Recommendation: We recommend the Council strengthen year-end and grant period-end procedures to ensure all costs associated with the program have been captured and reported in the proper fiscal and grant year. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-004 - Period of Performance (Significant Deficiency and Noncompliance) Information on the federal program: U.S. Department of Health and Human Services, Assistance Listing #93.959 Block Grants for Prevention and Treatment of Substance Abuse. Criteria: 2 CFR section 200.77 defines the period of performance as the time during which the nonfederal entity may incur new obligations to carry out work authorized under the federal award. Condition: The Council recorded an expense in the current year and was subsequently reimbursed through the current year grant, however the expense was incurred in a prior period. Cause: The Council incurred advertising costs in the prior year, but the expense was not properly accrued in that year. The commercial run dates were June to September 2021. Effect: The Council was not in compliance with period of performance requirements. Questioned Costs: Known $2,083 Recommendation: We recommend the Council strengthen year-end and grant period-end procedures to ensure all costs associated with the program have been captured and reported in the proper fiscal and grant year. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-005 ? Allowable Costs (Significant Deficiency and Noncompliance) Information on the federal program: U.S. Department of Health and Human Services, Assistance Listing #93.959 Block Grants for Prevention and Treatment of Substance Abuse. Criteria: 2 CFR section 200.405 defines when a cost is allocable to multiple programs and establishes requirements for costs that are allocated to be done so uniformly across all programs. Allocation methods should be based on an appropriate measurement basis and used consistently. In addition, all allowable costs to be allocated must be properly documented and supported. Condition: During audit procedures, 21 non-payroll disbursements and 92 payroll disbursements were tested for allowable cost requirements. Of those tested, three exceptions were noted for costs that were allocated. Cause: For two payroll disbursements, the approved time sheet did not agree and therefore did not support the payroll allocation. The timesheet completed by the employee was not corrected and reapproved to properly reflect the actual time to be allocated to each program. For the non-payroll disbursement, a rent payment allocation did not follow the approved method based on square footage. A revised method was used to include only Montgomery County programs, however, the methodology was not documented and the percentages used did not follow the proportional allocation of the approved method.Effect: The Council was not in compliance with allowable cost requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen procedures and documentation policies for costs that are to be allocated to ensure they are consistent and meet compliance requirements. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-005 ? Allowable Costs (Significant Deficiency and Noncompliance) Information on the federal program: U.S. Department of Health and Human Services, Assistance Listing #93.959 Block Grants for Prevention and Treatment of Substance Abuse. Criteria: 2 CFR section 200.405 defines when a cost is allocable to multiple programs and establishes requirements for costs that are allocated to be done so uniformly across all programs. Allocation methods should be based on an appropriate measurement basis and used consistently. In addition, all allowable costs to be allocated must be properly documented and supported. Condition: During audit procedures, 21 non-payroll disbursements and 92 payroll disbursements were tested for allowable cost requirements. Of those tested, three exceptions were noted for costs that were allocated. Cause: For two payroll disbursements, the approved time sheet did not agree and therefore did not support the payroll allocation. The timesheet completed by the employee was not corrected and reapproved to properly reflect the actual time to be allocated to each program. For the non-payroll disbursement, a rent payment allocation did not follow the approved method based on square footage. A revised method was used to include only Montgomery County programs, however, the methodology was not documented and the percentages used did not follow the proportional allocation of the approved method.Effect: The Council was not in compliance with allowable cost requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen procedures and documentation policies for costs that are to be allocated to ensure they are consistent and meet compliance requirements. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-004 - Period of Performance (Significant Deficiency and Noncompliance) Information on the federal program: U.S. Department of Health and Human Services, Assistance Listing #93.959 Block Grants for Prevention and Treatment of Substance Abuse. Criteria: 2 CFR section 200.77 defines the period of performance as the time during which the nonfederal entity may incur new obligations to carry out work authorized under the federal award. Condition: The Council recorded an expense in the current year and was subsequently reimbursed through the current year grant, however the expense was incurred in a prior period. Cause: The Council incurred advertising costs in the prior year, but the expense was not properly accrued in that year. The commercial run dates were June to September 2021. Effect: The Council was not in compliance with period of performance requirements. Questioned Costs: Known $2,083 Recommendation: We recommend the Council strengthen year-end and grant period-end procedures to ensure all costs associated with the program have been captured and reported in the proper fiscal and grant year. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-004 - Period of Performance (Significant Deficiency and Noncompliance) Information on the federal program: U.S. Department of Health and Human Services, Assistance Listing #93.959 Block Grants for Prevention and Treatment of Substance Abuse. Criteria: 2 CFR section 200.77 defines the period of performance as the time during which the nonfederal entity may incur new obligations to carry out work authorized under the federal award. Condition: The Council recorded an expense in the current year and was subsequently reimbursed through the current year grant, however the expense was incurred in a prior period. Cause: The Council incurred advertising costs in the prior year, but the expense was not properly accrued in that year. The commercial run dates were June to September 2021. Effect: The Council was not in compliance with period of performance requirements. Questioned Costs: Known $2,083 Recommendation: We recommend the Council strengthen year-end and grant period-end procedures to ensure all costs associated with the program have been captured and reported in the proper fiscal and grant year. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-003 ? Data Collection Form and Reporting Package to the Federal Audit Clearinghouse (Significant Deficiency and Noncompliance) Information on the federal program: All Federal Programs Criteria: 2 CFR section 200.512 establishes the requirements that the audit reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors, or nine months after the end of the audit period. The data elements and format must be approved by the OMB and include all required elements. Condition: The Council did not file the audit report and data collection form by June 30, 2023. Cause: The Council had multiple setbacks during the current year including financial staff turnover and data loss that caused audit delays and accounting cleanup work that could not be done before the audit was completed. Effect: The Council is not in compliance with federal reporting requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen its policies and procedures to ensure year-end close is completed in a timely manner to allow for the audit to be issued and reports filed before the due date. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-005 ? Allowable Costs (Significant Deficiency and Noncompliance) Information on the federal program: U.S. Department of Health and Human Services, Assistance Listing #93.959 Block Grants for Prevention and Treatment of Substance Abuse. Criteria: 2 CFR section 200.405 defines when a cost is allocable to multiple programs and establishes requirements for costs that are allocated to be done so uniformly across all programs. Allocation methods should be based on an appropriate measurement basis and used consistently. In addition, all allowable costs to be allocated must be properly documented and supported. Condition: During audit procedures, 21 non-payroll disbursements and 92 payroll disbursements were tested for allowable cost requirements. Of those tested, three exceptions were noted for costs that were allocated. Cause: For two payroll disbursements, the approved time sheet did not agree and therefore did not support the payroll allocation. The timesheet completed by the employee was not corrected and reapproved to properly reflect the actual time to be allocated to each program. For the non-payroll disbursement, a rent payment allocation did not follow the approved method based on square footage. A revised method was used to include only Montgomery County programs, however, the methodology was not documented and the percentages used did not follow the proportional allocation of the approved method.Effect: The Council was not in compliance with allowable cost requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen procedures and documentation policies for costs that are to be allocated to ensure they are consistent and meet compliance requirements. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.
Finding 2022-005 ? Allowable Costs (Significant Deficiency and Noncompliance) Information on the federal program: U.S. Department of Health and Human Services, Assistance Listing #93.959 Block Grants for Prevention and Treatment of Substance Abuse. Criteria: 2 CFR section 200.405 defines when a cost is allocable to multiple programs and establishes requirements for costs that are allocated to be done so uniformly across all programs. Allocation methods should be based on an appropriate measurement basis and used consistently. In addition, all allowable costs to be allocated must be properly documented and supported. Condition: During audit procedures, 21 non-payroll disbursements and 92 payroll disbursements were tested for allowable cost requirements. Of those tested, three exceptions were noted for costs that were allocated. Cause: For two payroll disbursements, the approved time sheet did not agree and therefore did not support the payroll allocation. The timesheet completed by the employee was not corrected and reapproved to properly reflect the actual time to be allocated to each program. For the non-payroll disbursement, a rent payment allocation did not follow the approved method based on square footage. A revised method was used to include only Montgomery County programs, however, the methodology was not documented and the percentages used did not follow the proportional allocation of the approved method.Effect: The Council was not in compliance with allowable cost requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen procedures and documentation policies for costs that are to be allocated to ensure they are consistent and meet compliance requirements. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.