Audit 385809

Federal Agency: Department of Health and Human Services Federal Program Name: Healthy Marriage and Responsible Fatherhood – Fatherhood Connection (FIRE) Assistance Listing Number: 93.086 Federal Award Identification Number and Year: 90ZJ0017-04 & 90ZJ0017-05 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: July 1, 2024 to June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Uniform Grant Guidance (2 CFR Part 200) requires that payroll costs charged to grants is based off time and effort documented. Condition: The Organization did not perform and document backward-looking reconciliations of actual payroll costs charged for certain salaried employees. Context: Of the 13 payroll transactions tested, a total of 4 did not have controls in place over time and effort reporting. Cause: Lack of understanding over time and effort reporting requirements. Effect: Time may be inappropriately charged to a grant or not recorded against a grant. Repeat Finding: No Recommendation: Implement strategy of using time and effort documentation in determining payroll costs charged to grants. Views of responsible officials: There is no disagreement with the audit finding. Corrective action plans: Management is in process of implementing a policy to track time and effort of salaried employees.

Federal Agency: Department of Health and Human Services Federal Program Name: Healthy Marriage and Responsible Fatherhood – Fatherhood Connection (FIRE) Assistance Listing Number: 93.086 Federal Award Identification Number and Year: 90ZJ0017-04 & 90ZJ0017-05 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: July 1, 2024 to June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or specific requirement: Grant agreement states that a maximum of $350 for incentives to be paid out to each program participant. Condition: The Organization did not meet requirements for all program participants incentives. Context: Of the 25 participants tested, a total of 2 participants were paid more than $350 in program incentives. Cause: Lack of internal controls over incentive maximums. Effect: Unallowable payments to certain participants charged to a grant or not recorded against a grant. Repeat Finding: No Recommendation: Implement controls for review of payment limits prior to distributing funds to program participants. Views of responsible officials: There is no disagreement with the audit finding. Corrective action plans: Management is implementing a tool to monitor and track the incentive payments.