Audit 26673

Finding 2022-001 Material Weakness in Internal Control over Compliance, Material Noncompliance - Allowable Costs/Cost Principles Identification of the federal program Agency Department of Health and Human Services ALN 93.558 Program Temporary Assistance for Needy Families Award Number 16QLAKTANF Award Year 2022 Criteria or specific requirement In accordance with 2 CFR 200 Subpart E, management is responsible for establishing a reasonable basis of shared-cost allocation for costs benefitting two or more programs or activities, and adequately documenting basis of allocation. Condition Camp Fire Alaska did not have a clear expenditure allocation methodology or appropriate controls in place to ensure allocations of costs between programs and administrative functions were documented in accordance with Uniform Guidance. Allocated payroll was not tracked with timesheets or a time study. Cause There is not an established policy for allocating costs that fully aligns with Uniform Guidance. Effect or Potential Effect While the nature of the costs appear in line with allowable activities, the granting agency may question the allowability of the costs due to the documentation of the allocation. Questioned costs $7,696 Context In our test work over activities allowed or unallowed and allowable costs/ cost principles, we noted inadequate documentation to support the sharedcost allocation methodology applied to allocable expenditures and noted no controls over the review of shared-cost allocations in place to ensure consistent and appropriate allocation of expenditures to ensure reliability of reporting in 4 of 60 nonpayroll and 27 of 60 payroll samples tested. All transactions tested appear allowable under the federal award, but documentation of allocation was inadequate. The total amount recorded using an allocation was $270,052. Of this, $174,681 was related to payroll. Identification as a repeat finding No Recommendation We recommend Camp Fire Alaska establish a clear shared-cost allocation methodology that is compliant with the requirements of the Uniform Guidance and controls over the review of the shared-cost allocation to ensure reliable reporting. Views of Responsible Officials Management concurs with the findings. Management will establish a clear shared-cost allocation methodology and controls over the review of allocations to ensure reliable reporting.

Finding 2022-001 Material Weakness in Internal Control over Compliance, Material Noncompliance - Allowable Costs/Cost Principles Identification of the federal program Agency Department of Health and Human Services ALN 93.558 Program Temporary Assistance for Needy Families Award Number 16QLAKTANF Award Year 2022 Criteria or specific requirement In accordance with 2 CFR 200 Subpart E, management is responsible for establishing a reasonable basis of shared-cost allocation for costs benefitting two or more programs or activities, and adequately documenting basis of allocation. Condition Camp Fire Alaska did not have a clear expenditure allocation methodology or appropriate controls in place to ensure allocations of costs between programs and administrative functions were documented in accordance with Uniform Guidance. Allocated payroll was not tracked with timesheets or a time study. Cause There is not an established policy for allocating costs that fully aligns with Uniform Guidance. Effect or Potential Effect While the nature of the costs appear in line with allowable activities, the granting agency may question the allowability of the costs due to the documentation of the allocation. Questioned costs $7,696 Context In our test work over activities allowed or unallowed and allowable costs/ cost principles, we noted inadequate documentation to support the sharedcost allocation methodology applied to allocable expenditures and noted no controls over the review of shared-cost allocations in place to ensure consistent and appropriate allocation of expenditures to ensure reliability of reporting in 4 of 60 nonpayroll and 27 of 60 payroll samples tested. All transactions tested appear allowable under the federal award, but documentation of allocation was inadequate. The total amount recorded using an allocation was $270,052. Of this, $174,681 was related to payroll. Identification as a repeat finding No Recommendation We recommend Camp Fire Alaska establish a clear shared-cost allocation methodology that is compliant with the requirements of the Uniform Guidance and controls over the review of the shared-cost allocation to ensure reliable reporting. Views of Responsible Officials Management concurs with the findings. Management will establish a clear shared-cost allocation methodology and controls over the review of allocations to ensure reliable reporting.