Item:
2023-002
Assistance Listing Number:
93.914
Program:
HIV Emergency Relief Project Grants
Federal Agency:
U.S. Department of Health and Human Services
Pass-Through Agencies:
Maricopa County
Pass-Through Grantor Identifying Number:
A22MHSSWC, A23MHSSWC, A22MNSSWC, A23MNSSW, A22MCMSWC, A23MCMSWC, A22NMCMSWC, A23NMCMSWC, A22FBMSWC, A23FBMSWC
Award Year:
March 1, 2022 - February 28, 2023; March 1, 2023 - February 28, 2024
Compliance Requirement:
Allowable Activities and Costs
Criteria:
In accordance with 2 CFR § 200.405 – Allocable Costs - (d) If a cost benefits two or more projects or activities in proportions that can be determined without undue effort or cost, the cost must be allocated to the projects based on the proportional benefit.
Condition:
Costs charged to the federal program were based on an allocation methodology that was not properly updated for the current period.
Questioned Costs:
n/a
Context:
In a population of over 250 non-payroll costs charged to the program, we conducted a non-statistical sample of 40 non-payroll costs charged to the program. In our sample of 40, we noted that 1 selection was charged to the program based on an allocation methodology that was not properly updated for the current period. The variances between the amount charged and the amount supported, as well as the projected impact to the entire population, was trivial in nature. However, this is deemed to be a material weakness in internal control over compliance.
Effect:
The system of internal controls was not properly implemented.
Cause:
Turnover within key positions of the organization resulted in insufficient documentation and/or inadequate implementation of the control procedures.
Identification as a Repeat Finding:
Not a repeat finding
Recommendation:
The Organization should enhance its processes and controls to ensure that cost allocation methodologies utilized to bill federal awards are properly updated each reporting period as deemed necessary to accurately reflect the proportional benefit.
Views of Responsible Officials:
Management of the Organization concurs with the finding. See Corrective Action Plan.
Item:
2023-003
Assistance Listing Number:
93.940
Programs:
HIV Prevention Activities Health Department Based
Federal Agency:
U.S. Department of Health and Human Services
Pass-Through Agencies:
Arizona Department of Health Services
Pass-Through Grantor Identifying Number:
CTR069364, CTR067201, CTR045489, ADHS19-207305
Award Year:
April 1, 2022 to March 31, 2023; August 1, 2022 to July 31, 2023; January 1, 2023 to December 31, 2023; April 1, 2023 to March 31, 2024; August 1, 2023 to July 31, 2024
Compliance Requirement:
Allowable Activities and Costs
Criteria:
In accordance with 2 CFR § 200.405 – Allocable Costs - (d) If a cost benefits two or more projects or activities in proportions that can be determined without undue effort or cost, the cost must be allocated to the projects based on the proportional benefit.
Condition:
Costs charged to the federal program were based on an allocation methodology that was not properly updated for the current period.
Questioned Costs:
n/a
Context:
In a population of over 250 non-payroll costs charged to the program, we conducted a non-statistical sample of 40 non-payroll costs charged to the program. In our sample of 40, we noted that 5 selections were charged to the program based on an allocation methodology that was not properly updated for the current period. The variances between the amounts charged and the amounts supported, as well as the projected impact to the entire population, was trivial in nature. However, this is deemed to be a material weakness in internal control over compliance.
Effect:
The system of internal controls was not properly implemented.
Cause:
Turnover within key positions of the organization resulted in insufficient documentation and/or inadequate implementation of the control procedures.
Identification as a Repeat Finding:
Not a repeat finding
Recommendation:
The Organization should enhance its processes and controls to ensure that cost allocation methodologies utilized to bill federal awards are properly updated each reporting period as deemed necessary to accurately reflect the proportional benefit.
Views of Responsible Officials:
Management of the Organization concurs with the finding. See Corrective Action Plan.
Item:
2023-004
Assistance Listing Number:
93.940
Programs:
HIV Prevention Activities Health Department Based
Federal Agency:
U.S. Department of Health and Human Services
Pass-Through Agencies:
Arizona Department of Health Services
Pass-Through Grantor Identifying Number:
CTR069364, CTR067201, CTR045489, ADHS19-207305
Award Year:
April 1, 2022 to March 31, 2023; August 1, 2022 to July 31, 2023; January 1, 2023 to December 31, 2023; April 1, 2023 to March 31, 2024; August 1, 2023 to July 31, 2024
Compliance Requirement:
Allowable Activities and Costs
Criteria:
In accordance with 2 CFR § 200.430 – Compensation – charges to federal programs for salaries and wages should be supported by a system of internal controls which provides reasonable assurance the amounts charged are accurate, allowable and properly allocated.
Condition:
Incorrect allocation of employee hours were charged to the federal program.
Questioned Costs:
n/a
Context:
In a population of over 250 payroll costs charged to the program, we conducted a non-statistical sample of 40 payroll costs charged to the program. In our sample of 40, we noted that 1 selection in which the employee was paid at an outdated pay rate and paid overtime that was not supported by the employee timesheet. The variances between the amount charged and the amount supported, as well as the projected impact to the entire population, was trivial in nature. This is deemed to be a significant deficiency in internal control over compliance.
Effect:
The system of internal controls was not properly implemented.
Cause:
The entity’s system of internal controls did detect, or document the rationale for, instances in which the amounts charged to a federal program did not agree to the underlying supporting documentation maintained by the Organization.
Identification as a Repeat Finding:
Repeat finding – prior year 2022-004
Recommendation:
The Organization should enhance its processes and controls to ensure that expenses are appropriately reviewed before submission of billing.
Views of Responsible Officials:
Management of the Organization concurs with the finding. See Corrective Action Plan.
Item:
2023-005
Assistance Listing Number:
93.940
Programs:
HIV Prevention Activities Health Department Based
Federal Agency:
U.S. Department of Health and Human Services
Pass-Through Agencies:
Arizona Department of Health Services
Pass-Through Grantor Identifying Number:
CTR069364, CTR067201, CTR045489, ADHS19-207305
Award Year:
April 1, 2022 to March 31, 2023; August 1, 2022 to July 31, 2023; January 1, 2023 to December 31, 2023; April 1, 2023 to March 31, 2024; August 1, 2023 to July 31, 2024
Compliance Requirement:
Reporting
Criteria:
Per grant agreements the organization was required to submit multiple reports at various dates during the grant period.
Condition:
Required reports not submitted to granting agency and incomplete record retention to evidence the timely submission of reports to granting agencies.
Questioned Costs:
n/a
Context:
In a population of 52 required reports, we conducted a non-statistical sample of seven reports. In our sample of seven, we noted two required reports were not submitted to the granting agency. Additionally, management did not have contemporaneous documentation to evidence the timely submission of reports to certain granting agencies. This is deemed to be a material weakness in internal control over compliance.
Effect:
The system of internal controls was not properly implemented.
Cause:
Turnover within key positions of the organization resulted in insufficient documentation and/or inadequate implementation of the control procedures.
Identification as a Repeat Finding:
Not a repeat finding
Recommendation:
The Organization should enhance its processes and controls to ensure that required reports are submitted to granting agencies and to retain evidence of timely submission within the Organization's records.
Views of Responsible Officials:
Management of the Organization concurs with the finding. See Corrective Action Plan.
Item:
2023-002
Assistance Listing Number:
93.914
Program:
HIV Emergency Relief Project Grants
Federal Agency:
U.S. Department of Health and Human Services
Pass-Through Agencies:
Maricopa County
Pass-Through Grantor Identifying Number:
A22MHSSWC, A23MHSSWC, A22MNSSWC, A23MNSSW, A22MCMSWC, A23MCMSWC, A22NMCMSWC, A23NMCMSWC, A22FBMSWC, A23FBMSWC
Award Year:
March 1, 2022 - February 28, 2023; March 1, 2023 - February 28, 2024
Compliance Requirement:
Allowable Activities and Costs
Criteria:
In accordance with 2 CFR § 200.405 – Allocable Costs - (d) If a cost benefits two or more projects or activities in proportions that can be determined without undue effort or cost, the cost must be allocated to the projects based on the proportional benefit.
Condition:
Costs charged to the federal program were based on an allocation methodology that was not properly updated for the current period.
Questioned Costs:
n/a
Context:
In a population of over 250 non-payroll costs charged to the program, we conducted a non-statistical sample of 40 non-payroll costs charged to the program. In our sample of 40, we noted that 1 selection was charged to the program based on an allocation methodology that was not properly updated for the current period. The variances between the amount charged and the amount supported, as well as the projected impact to the entire population, was trivial in nature. However, this is deemed to be a material weakness in internal control over compliance.
Effect:
The system of internal controls was not properly implemented.
Cause:
Turnover within key positions of the organization resulted in insufficient documentation and/or inadequate implementation of the control procedures.
Identification as a Repeat Finding:
Not a repeat finding
Recommendation:
The Organization should enhance its processes and controls to ensure that cost allocation methodologies utilized to bill federal awards are properly updated each reporting period as deemed necessary to accurately reflect the proportional benefit.
Views of Responsible Officials:
Management of the Organization concurs with the finding. See Corrective Action Plan.
Item:
2023-003
Assistance Listing Number:
93.940
Programs:
HIV Prevention Activities Health Department Based
Federal Agency:
U.S. Department of Health and Human Services
Pass-Through Agencies:
Arizona Department of Health Services
Pass-Through Grantor Identifying Number:
CTR069364, CTR067201, CTR045489, ADHS19-207305
Award Year:
April 1, 2022 to March 31, 2023; August 1, 2022 to July 31, 2023; January 1, 2023 to December 31, 2023; April 1, 2023 to March 31, 2024; August 1, 2023 to July 31, 2024
Compliance Requirement:
Allowable Activities and Costs
Criteria:
In accordance with 2 CFR § 200.405 – Allocable Costs - (d) If a cost benefits two or more projects or activities in proportions that can be determined without undue effort or cost, the cost must be allocated to the projects based on the proportional benefit.
Condition:
Costs charged to the federal program were based on an allocation methodology that was not properly updated for the current period.
Questioned Costs:
n/a
Context:
In a population of over 250 non-payroll costs charged to the program, we conducted a non-statistical sample of 40 non-payroll costs charged to the program. In our sample of 40, we noted that 5 selections were charged to the program based on an allocation methodology that was not properly updated for the current period. The variances between the amounts charged and the amounts supported, as well as the projected impact to the entire population, was trivial in nature. However, this is deemed to be a material weakness in internal control over compliance.
Effect:
The system of internal controls was not properly implemented.
Cause:
Turnover within key positions of the organization resulted in insufficient documentation and/or inadequate implementation of the control procedures.
Identification as a Repeat Finding:
Not a repeat finding
Recommendation:
The Organization should enhance its processes and controls to ensure that cost allocation methodologies utilized to bill federal awards are properly updated each reporting period as deemed necessary to accurately reflect the proportional benefit.
Views of Responsible Officials:
Management of the Organization concurs with the finding. See Corrective Action Plan.
Item:
2023-004
Assistance Listing Number:
93.940
Programs:
HIV Prevention Activities Health Department Based
Federal Agency:
U.S. Department of Health and Human Services
Pass-Through Agencies:
Arizona Department of Health Services
Pass-Through Grantor Identifying Number:
CTR069364, CTR067201, CTR045489, ADHS19-207305
Award Year:
April 1, 2022 to March 31, 2023; August 1, 2022 to July 31, 2023; January 1, 2023 to December 31, 2023; April 1, 2023 to March 31, 2024; August 1, 2023 to July 31, 2024
Compliance Requirement:
Allowable Activities and Costs
Criteria:
In accordance with 2 CFR § 200.430 – Compensation – charges to federal programs for salaries and wages should be supported by a system of internal controls which provides reasonable assurance the amounts charged are accurate, allowable and properly allocated.
Condition:
Incorrect allocation of employee hours were charged to the federal program.
Questioned Costs:
n/a
Context:
In a population of over 250 payroll costs charged to the program, we conducted a non-statistical sample of 40 payroll costs charged to the program. In our sample of 40, we noted that 1 selection in which the employee was paid at an outdated pay rate and paid overtime that was not supported by the employee timesheet. The variances between the amount charged and the amount supported, as well as the projected impact to the entire population, was trivial in nature. This is deemed to be a significant deficiency in internal control over compliance.
Effect:
The system of internal controls was not properly implemented.
Cause:
The entity’s system of internal controls did detect, or document the rationale for, instances in which the amounts charged to a federal program did not agree to the underlying supporting documentation maintained by the Organization.
Identification as a Repeat Finding:
Repeat finding – prior year 2022-004
Recommendation:
The Organization should enhance its processes and controls to ensure that expenses are appropriately reviewed before submission of billing.
Views of Responsible Officials:
Management of the Organization concurs with the finding. See Corrective Action Plan.
Item:
2023-005
Assistance Listing Number:
93.940
Programs:
HIV Prevention Activities Health Department Based
Federal Agency:
U.S. Department of Health and Human Services
Pass-Through Agencies:
Arizona Department of Health Services
Pass-Through Grantor Identifying Number:
CTR069364, CTR067201, CTR045489, ADHS19-207305
Award Year:
April 1, 2022 to March 31, 2023; August 1, 2022 to July 31, 2023; January 1, 2023 to December 31, 2023; April 1, 2023 to March 31, 2024; August 1, 2023 to July 31, 2024
Compliance Requirement:
Reporting
Criteria:
Per grant agreements the organization was required to submit multiple reports at various dates during the grant period.
Condition:
Required reports not submitted to granting agency and incomplete record retention to evidence the timely submission of reports to granting agencies.
Questioned Costs:
n/a
Context:
In a population of 52 required reports, we conducted a non-statistical sample of seven reports. In our sample of seven, we noted two required reports were not submitted to the granting agency. Additionally, management did not have contemporaneous documentation to evidence the timely submission of reports to certain granting agencies. This is deemed to be a material weakness in internal control over compliance.
Effect:
The system of internal controls was not properly implemented.
Cause:
Turnover within key positions of the organization resulted in insufficient documentation and/or inadequate implementation of the control procedures.
Identification as a Repeat Finding:
Not a repeat finding
Recommendation:
The Organization should enhance its processes and controls to ensure that required reports are submitted to granting agencies and to retain evidence of timely submission within the Organization's records.
Views of Responsible Officials:
Management of the Organization concurs with the finding. See Corrective Action Plan.