FAC Explorer

Audit 357589

FY End
2024-08-31
Total Expended
$1.31M
Findings
2
Programs
1
Organization: Brazos Valley Council on Alcohol and Substance Abuse (TX)
Year: 2024 Accepted: 2025-05-30
Auditor: Thompson Derrig & Craig PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
561971 2024-001 Significant Deficiency - B
1138413 2024-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1.31M Yes 1

Contacts

Name Title Type
MSV6MS8MWKJ5 Crystal Crowell Auditee
9798463560 Logan Kendrick Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - General Accounting Policies: The Schedule of Expenditures of Federal and State Awards is presented using the accrual basis of accounting. The accrual basis of accounting is described in Note 2 of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee used a negotiated provisional rate. The Schedule of Expenditures of Federal and State Awards presents the activity of all applicable federal and state award programs of the Brazos Valley Council on Alcohol and Substance Abuse (the Organization). The Organization’s reporting entity is defined in Note 1 of the financial statements. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State of Texas Grant Management Standards (Texas Standards).
Title: Note 2 - Basis of Accounting Accounting Policies: The Schedule of Expenditures of Federal and State Awards is presented using the accrual basis of accounting. The accrual basis of accounting is described in Note 2 of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee used a negotiated provisional rate. The Schedule of Expenditures of Federal and State Awards is presented using the accrual basis of accounting. The accrual basis of accounting is described in Note 2 of the financial statements.
Title: Note 3 - Contingencies Accounting Policies: The Schedule of Expenditures of Federal and State Awards is presented using the accrual basis of accounting. The accrual basis of accounting is described in Note 2 of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee used a negotiated provisional rate. Allowable expenditures of federal and state awards are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the Organization. As of August 31, 2024, the Organization had no significant liabilities to federal or state agencies. However, as described in Note 11 of the financial statements, questioned costs were identified for fiscal year 2024 related to payroll costs misallocated to certain programs. The total estimated impact of the finding is $30,242 which is reported on the accompanying schedule of findings and questioned costs.
Title: Note 4 - Indirect Cost Rate Accounting Policies: The Schedule of Expenditures of Federal and State Awards is presented using the accrual basis of accounting. The accrual basis of accounting is described in Note 2 of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee used a negotiated provisional rate. The Organization did not elect to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 5 - Insurance in Effect Accounting Policies: The Schedule of Expenditures of Federal and State Awards is presented using the accrual basis of accounting. The accrual basis of accounting is described in Note 2 of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee used a negotiated provisional rate. For the year ended August 31, 2024, the following insurance coverage was in effect:

Finding Details

Finding 2024-001
Section 2 - Federal and State Award Findings and Questioned Costs Significant Deficiency 2024-001 Payroll costs were allocated to incorrect programs Prevention and Treatment of Substance Abuse, CFDA #93.959, Pass-Through Grant #HHS000539700192 Criteria: In accordance with Uniform Guidance (2 CFR § 200.430g), payroll costs must be charged accurately to federal awards and should be supported by records that appropriately reflect the work performed. Condition: Payroll costs reported for the associated programs under pass-through grant #HHS000539700192 totaling approximately $30,242 were erroneously charged to the incorrect program. Cause: The issue was caused by coding errors in the accounting system during payroll processing. The responsible personnel mistakenly allocated the employees' hours to incorrect program codes for certain employees and pay periods without adequate review and reconciliation to the source timesheets. Effect: Payroll costs for the individual programs under CFDA #93.959, Pass-Through Grant #HHS000539700192 were overstated in total by approximately $30,242. Questioned Costs: Approximately $30,242 Context: The finding was isolated to payroll costs and for only certain employees and pay periods, and no findings were identified related to other non-personnel direct or indirect costs or other compliance requirements. Repeat Finding: No Recommendation: We recommend that the Organization strengthen internal controls over payroll cost allocations, including adding an additional layer of review over payroll and ensuring the payroll data in the accounting system is properly reconciled to the employees' timesheets each pay period. Additionally, as possible, we recommend configuring validation controls in the accounting system to help prevent employees from being charged to incorrect program codes. Views of Responsible Officials and Planned Corrections Actions: Management agrees with the audit finding and a response is included in the corrective action plan.
Finding 2024-001
Section 2 - Federal and State Award Findings and Questioned Costs Significant Deficiency 2024-001 Payroll costs were allocated to incorrect programs Prevention and Treatment of Substance Abuse, CFDA #93.959, Pass-Through Grant #HHS000539700192 Criteria: In accordance with Uniform Guidance (2 CFR § 200.430g), payroll costs must be charged accurately to federal awards and should be supported by records that appropriately reflect the work performed. Condition: Payroll costs reported for the associated programs under pass-through grant #HHS000539700192 totaling approximately $30,242 were erroneously charged to the incorrect program. Cause: The issue was caused by coding errors in the accounting system during payroll processing. The responsible personnel mistakenly allocated the employees' hours to incorrect program codes for certain employees and pay periods without adequate review and reconciliation to the source timesheets. Effect: Payroll costs for the individual programs under CFDA #93.959, Pass-Through Grant #HHS000539700192 were overstated in total by approximately $30,242. Questioned Costs: Approximately $30,242 Context: The finding was isolated to payroll costs and for only certain employees and pay periods, and no findings were identified related to other non-personnel direct or indirect costs or other compliance requirements. Repeat Finding: No Recommendation: We recommend that the Organization strengthen internal controls over payroll cost allocations, including adding an additional layer of review over payroll and ensuring the payroll data in the accounting system is properly reconciled to the employees' timesheets each pay period. Additionally, as possible, we recommend configuring validation controls in the accounting system to help prevent employees from being charged to incorrect program codes. Views of Responsible Officials and Planned Corrections Actions: Management agrees with the audit finding and a response is included in the corrective action plan.