Item:
2024-001
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 Department of Public Health Services
Pass-Through Grantor Identifying Number:
A23MHSSWC, A24MHSSWC, A23MNSSWC, A24MNSSWC, A23MCMSWC, A24MCMSWC, A23NMCSWC, A24NMCSWC, A23FBMSWC, A24FBMSWC, A24SASSWC
Award Year:
March 1, 2023 - February 28, 2024; March 1, 2024 - February 28, 2025
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:
$865
Context:
During testing of non-payroll costs charged to the program, we received a report from the organization showing the variances between expenses allocated for reimbursement to the program using an incorrect allocation methodology, and the correct amounts that should have been allocated. The variance between the amounts charged and the amounts incurred by the tested program, $10,869 and $10,004, respectively, was $865, which is trivial in nature. However, this is a repeat finding and 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. Additionally, issue not discovered until prior year audit discovery in August 2024.
Identification as a Repeat Finding:
Repeat finding – prior year 2023-002
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:
2024-002
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:
252026/152034
Award Year:
August 1, 2023 – April 30, 2024; January 1, 2024 – May 31, 2025; May 1, 2024 – April 30, 2025
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:
$1,835
Context:
In a population of over 109 non-payroll costs charged to the program, we conducted a non-statistical sample of 11 non-payroll costs charged to the program. In our sample of 11, 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 variance between the amounts charged and the amounts supported, $3,260 and $1,425, respectively, was $1,835, which is 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. Additionally, issue not discovered until prior year audit discovery in August 2024.
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:
2024-003
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:
252026/152034
Award Year:
August 1, 2023 – April 30, 2024; January 1, 2024 – May 31, 2025; May 1, 2024 – April 30, 2025
Compliance Requirement:
Reporting
Criteria:
Per the grant agreements, award recipients are required to submit monthly reimbursement report within a set number of days after month end.
Condition:
Financial reimbursement reports were submitted after the required due date.
Questioned Costs:
n/a
Context:
In a population of 56 required reports, we conducted a non-statistical sample of four programmatic and three financial reimbursement reports. In our sample of seven, we noted the three required financial reimbursement reports were not submitted to the granting agency timely. This is deemed to be a material weakness in internal control over compliance.
Effect:
The system of internal controls was not properly implemented.
Cause:
Weak communication with the grantor resulted in unclear deliverable and due date requirements.
Identification as a Repeat Finding:
Not a repeat finding
Recommendation:
The Organization should enhance its processes and controls to ensure that deliverables are submitted in the time frames laid out by the grant agreements.
Item:
2024-001
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 Department of Public Health Services
Pass-Through Grantor Identifying Number:
A23MHSSWC, A24MHSSWC, A23MNSSWC, A24MNSSWC, A23MCMSWC, A24MCMSWC, A23NMCSWC, A24NMCSWC, A23FBMSWC, A24FBMSWC, A24SASSWC
Award Year:
March 1, 2023 - February 28, 2024; March 1, 2024 - February 28, 2025
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:
$865
Context:
During testing of non-payroll costs charged to the program, we received a report from the organization showing the variances between expenses allocated for reimbursement to the program using an incorrect allocation methodology, and the correct amounts that should have been allocated. The variance between the amounts charged and the amounts incurred by the tested program, $10,869 and $10,004, respectively, was $865, which is trivial in nature. However, this is a repeat finding and 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. Additionally, issue not discovered until prior year audit discovery in August 2024.
Identification as a Repeat Finding:
Repeat finding – prior year 2023-002
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:
2024-002
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:
252026/152034
Award Year:
August 1, 2023 – April 30, 2024; January 1, 2024 – May 31, 2025; May 1, 2024 – April 30, 2025
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:
$1,835
Context:
In a population of over 109 non-payroll costs charged to the program, we conducted a non-statistical sample of 11 non-payroll costs charged to the program. In our sample of 11, 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 variance between the amounts charged and the amounts supported, $3,260 and $1,425, respectively, was $1,835, which is 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. Additionally, issue not discovered until prior year audit discovery in August 2024.
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:
2024-003
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:
252026/152034
Award Year:
August 1, 2023 – April 30, 2024; January 1, 2024 – May 31, 2025; May 1, 2024 – April 30, 2025
Compliance Requirement:
Reporting
Criteria:
Per the grant agreements, award recipients are required to submit monthly reimbursement report within a set number of days after month end.
Condition:
Financial reimbursement reports were submitted after the required due date.
Questioned Costs:
n/a
Context:
In a population of 56 required reports, we conducted a non-statistical sample of four programmatic and three financial reimbursement reports. In our sample of seven, we noted the three required financial reimbursement reports were not submitted to the granting agency timely. This is deemed to be a material weakness in internal control over compliance.
Effect:
The system of internal controls was not properly implemented.
Cause:
Weak communication with the grantor resulted in unclear deliverable and due date requirements.
Identification as a Repeat Finding:
Not a repeat finding
Recommendation:
The Organization should enhance its processes and controls to ensure that deliverables are submitted in the time frames laid out by the grant agreements.